Monday, December 15, 2008

Another scam, another rip-off

Will the bad news for the world's banks never end? As though the losses in the sub-prime crisis was not enough, now comes the news of losses on exposures to an investment fund, rather aptly named Madoff, after its founder Bernard Madoff, former head of Nasdaq.

The investment fund has collapsed reportedly with accumulated losses of $50bn, incurred over several years. Madoff apparently ran a Ponzi scheme in this period, pay off old investors with funds from new investors. The prominent losers mentioned so far:
  • HSBC- $ 1bn
  • BNP Paribas-$468 mn
  • Banco Santander- Euro 17 mn

3 comments:

Anonymous said...

nn,n,mn,mn,mn n,mn,n

2jaipm said...

Its amazing how come HSBC got into the Trap of Madoff...I could digest Individual Investors or a religious institution or village fund as a key prey...

rants n' raves said...

I guess their account was called john cook (de book) and financial adviser was Jeremiah Swindle.