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HSBC agrees $62 million Madoff settlement
by Sarah Miloudi on Jun 08, 2011 at 08:38
The settlement with Irish-domiciled Thema fund investors is worth an estimated 20 cents on the dollar for the vehicle's $312 million in accrued real losses, reports claimed. HSBC acted as custodian for the fund, however the bank did not admit liability for investors' eventual losses.
The settlement reflects only a tiny portion of HSBC's exposure in connection with Madoff, who in 2008 admitted the entire wealth management arm of his business, Bernard L Madoff Investment Securities, had been an elaborate Ponzi scheme.
By the time of Madoff's arrest in December 2008, HSBC had become custodian or administrator to a number of funds linked to the former Wall Street investor. These had accrued real losses of around $4.3 billion (£2.62 million).
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