Banks and financial institutions affected by the Madoff business

[emad]

Daily Telegraph List:


* Access International Advisors said some of its funds were invested with Bernard Madoff. The New York-based investment frim said it was working with counsel to assess the situation, describing it as "a shocking development".

* Insurer Axa said that it faced losses because of the Madoff scandal, but said that its exposure amounted to less than €100m (£90m).

* Spain's Banco Santander, which owns Abbey and Alliance and Leicester, said its hedge fund unit invested €2.33bn (£2bn) of client funds with Bernard Madoff.

* The Geneva-based Banque Benedict Hentsch Fairfield Partners SA said its exposure is 56m Swiss francs (£32m) of client assets.

* Spain's second-largest bank, BBVA, said it could potentially lose €300m (£270m) in the alleged scam run by New York trader Bernard Madoff.

* Boston philanthropist Carl Shapiro’s charitable foundation - $145m (source Boston Globe).

* Bramdean Alternatives Ltd - 9.5pc of its assets, according to a company statement.

* BNP Paribas, France's biggest listed bank, said it could face a potential €350m (£313) loss from an exposure to Bernard Madoff's investment activities.

* EIM Group - $230m (£153m) (source Reuters, citing Le Temps Newspaper).

* Elise Wiesal Foundation for Humanity - undertermined ( source Wall Street Journal).

* Fairfield Greenwich Group - $7.5bn, according to a company statement.

* Fix Asset Management - $400m (£266m), according to a company statement.

* GMAC chairman Jacob Ezra Merkin's Ascot Partners - Most of its $1.8bn (£1.2bn) of assets (Wall Street Journal).

* Harel Insurance Investments and Financial Services - $14.2m (£9.5m), according to a company statement.

* HSBC said it has potential exposure of almost £670m to Bernard Madoff’s alleged $50bn fraud.

* Julian J. Levitt Foundation - $6m (£4m) (source Washington Post).

* Kingate Management Ltd - $3.5bn (£2.3bn) (source Bloomberg).

* Korea Life Insurance - $50m (£33m) (source Yonhap news).

* Korea Teachers' Pension - $9.1m (£6m), according to a company statement.

* Man Group said that its institutional fund of funds business RMF has approximately $360m (£239m) invested in two funds that are directly or indirectly sub-advised by Madoff Securities and for which Madoff Securities acts as broker/dealer executing the investment strategy.

* Madoff Family Foundation - $19m (£13m) - (source Washington Post).

* Maxam Capital Management - $280m (£186m) - (source Wall Street Journal).

* Neue Privat Bank, a Zurich-based bank, said its clients may lose as much as $5m (£3m) invested in the fund linked to Bernard Madoff. The money was invested through Nomura Bank International, Neue Privat Bank said in a release.

* New York Met's owner Fred Wilpon's Sterling Equities - undertermined, according to a company statement.

* Nomura Holdings, Japan's largest brokerage, said it has 27.5 billion yen ($302 million) at risk linked to Bernard Madoff's investment funds

* Norman Braman, former owner of the Philadelphia Eagles Football Team - undertermined (source Wall Street Journal).

* North Shore-Long Island Jewish Health System - $5m (£3.3m), according to a company statement.

* Notz, Stucki & Cie - undertermined (source Reuters, citing Le Temps newspaper).

* Pioneer Alternative Investments - almost all of its $280m (£187m) of assets (source Bloomberg).

* Robert I. Lappin Charitable Foundation - $8m (£5.3m) (source Washington Post).

* Royal Bank of Scotland said it had exposure through trading and collateralised lending to funds of hedge funds invested with Bernard L Madoff Investment Securities.If as a result of the alleged fraud the value of the assets of these hedge funds is nil, RBS's potential loss could amount to approximately £400m.

* Reichmuth and Co’s Reichmuth Matterhorn fund - $330m (£221m) (source letter to clients).

* Societe Generale - less than €10m (£9m), according to a company statement.

* Tremont Capital Management - undertermined (source Wall Street Journal).

* Yeshiva University - undetermined (source Washington Post)

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/3776155/Bernard-Madoff-British-financial-groups-exposure-to-US-fraud-close-to-1.4bn.html

[geckosfeet]

1. Santander also has a deal in the works with Soveriegn. I wonder how this

will affect it. It was supposed to be finalised in January. Might this kill it? Soveriegn shareholders were supposed to get Santander shares in the trade. Not sure that is such a good deal now.

[Cessna Invesco Palin]

2. Can someone explain...

...why a charitable foundation would be so heavily invested in hedge funds? I don't get it.

[emad]

4. Smart salestalk, glib marketing and a personal recommendation

from an existing customer?

Loads of ways the gullible got hooked.

[Cessna Invesco Palin]

7. I guess.

But it's still a hedge fund. They're specifically designed to be high risk.

[emad]

12. Live dangerously! It's all for charidee....

/

[KharmaTrain]

3. I Talked To Someone Who Lost Almost All To Madoff

I'll be honest, I hadn't heard of this guy or his funds until the scandal broke last week. The other day I spoke with someone who most of my associates used to call the "financial wizard"...always talking about the markets and apparently making a ton of money. The other day I caught up with him...almost all of his investment savings were wiped out over the past 6 months. For years he was getting between 7-15% returns on this portfolio and when the prices started to fall, he was told to hang tight (just like the rest of us)...but then reading into this scheme, there was never any assurance had he decided to cash out months ago that he'd ever see that money.

The report I saw allueded that Madoff is just the tip of another financial iceburg...that many fund managers used similar tricks to replenish their funds with fresh money...giving those had been in the longest their returns using money raised from fresh suckers. THe irony is this dude didn't sound too upset at what happened. He estimated that for the decade he was in this fund he probably made twice as much as he ended up losing...easy come, easy go. Wish I could watch all that money go flying out the door and not flinch.

[tama]

6. He's criminal.

Taking part and benefitting from a pyramid fraud. AFAIK under US law the bastard should pay back all the returns he got from the fraud.

[KharmaTrain]

8. He's Not Alone...

There are many funds that promoted the same way Madoff had. I used to get an email from one of these dudes...a repugnican from Texas (surprise, surprise) who always had some great new "vehicle" that was only offered to his "special clients"...just give him $100K and you're golden. I haven't gotten one of his scam sheets (I used to laugh at how blind this dude was...I was right) in three months.

When this mess is said and done...and millions are wiped out, damn right there's going to be lawsuits all these schemes will be revealed. I'll bet their crapping in their Depends over at CNBC...some of the biggest cheerleaders and profiteers from these funds.

Cheers...

[tama]

9. Lawsuits?

Law is broken, the rich fucks own the law. Only way to get these scoundrels is street justice, tar and feathers.

[KharmaTrain]

10. There Are Big Class Actions Forming Right Now

This isn't criminal, this will be in civil court...investors and ambitious laywers who will go after the money. Many of these are also "rich fucks" or former "rich fucks", but also "poor fucks" like pension funds and endowments for non-profits and schools.

Yes, right now the criminal is a joke, we haven't had a functional DOJ since January 19, 2001...and an SEC and FEC since the 70's. I'm cautiously optmistic we'll see some prosecution here...too many have been ruined for there not to be...and a popular way for the DOJ to regain some much needed credibility.

[tama]

11. Which brings to mind

US Senate says those DOJ guys are guilty of torture, together with Bush, Cheney, Rice, Rumsfeld et alii: http://news.bbc.co.uk/2/hi/middle_east/7780355.stm

But are they going to arrest and judge those criminals? No.

IMHO, if Americans have any spine left, the day those criminals leave office is the day to start making citizen's arrests...

[Vickers]

5. Locally (Palm Beach county) the Arthur I. and Sydelle Foundation

probably lost everything. In the paper this morning Sydelle Meyer said, "As far as we can tell, there is nothing left."

:wow:

They gave money to a LOT of local art organizations, including The Norton Museum of Art, Kravis Center for the Performing Arts, Dreyfoos Scool of the Arts, etc. etc.

:(

Arthur Sydelle passed away recently (October?)...I'm glad he's not alive to see his legacy wiped out by this Madoff criminal.

[Vickers]

13. Oops, forgot to put their last name: Arthur I. and Sydelle Meyer

Very generous and influential around here in arts and culture circles.

Very sad.