|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Tuesday 16th of December 2008
December 15, 2008

RBS latest bank at risk from Wall Street fraud


by Kay Murchie
”RBS

Last week, Wall Street investment manager Bernard Madoff was arrested and charged with alleged fraud after a hedge fund he managed racked up $50 billion (£33.5 billion) of fraudulent losses.

Banks have revealed billions in potential losses as a result and RBS (RBS) said in an announcement today that should the value of Madoff’s funds fall to zero, its potential loss will reach approximately £400 million.

The announcement is another blow to RBS, which is now 58% owned by the taxpayer following a bailout by the UK Government.

Meanwhile Nomura, which is Japan’s largest securities company, has £204 million invested with Madoff.

Other financial institutions believed to be affected is Spain’s largest bank, Santander, which owns UK banks Abbey, Alliance & Leicester and Bradford & Bingley.

According to reports, Santander has $3.1 billion invested in the firm run by 70-year-old Bernard Madoff. Furthermore, it is reported that HSBC could lose up to £668 million, according to a report in the Financial Times.

Last week Santander announced 1,900 job losses across its UK subsidiaries. The job losses, which will take place during 2009, represents 8% of the group’s UK workforce and could involve compulsory redundancies.

Meanwhile, victims of the alleged fraud ranges from large financial institutions to smaller local foundations and charities.

Bernard Madoff is the former chairman of Nasdaq, the technology-weighted US index, and is currently on £6.6 million bail.

Discuss this in the Finance Markets forums

Story link: RBS latest bank at risk from Wall Street fraud


Add to Bookmarks:

ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL

 

Tags: Bernard Madoff, , , , ,

 

Previous: « Mortgage equity withdrawal kept families afloat
Next: Irish Government in €10 billion bailout for country’s largest banks »

Visited 291 times, 15 so far today