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Frank
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« on: June 29, 2009, 06:07:34 PM » |
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As Madof goes down for 150 years HSBC are reeling in the pain of what they let themselves into. Just watch HSBC cover this little mess up!
HSBC worst hit of Bernard Madoff's $50bn fraud: Report
LONDON: Global banking major HSBC has emerged as one of the worst sufferers of Bernard Madoffs alleged $50-billion fraud as the financial services firm has exposure of about one billion dollar in the investment manager's collapsed venture, a media report says.
Quoting people familiar with the situation the Financial Times said "HSBC has emerged as one the largest victims of Bernard Madoffs alleged fraud with potential exposure of about USD one billion to the investment managers collapsed venture."
"HSBCs direct exposure is believed to be about one billion dollar in loans provided to clients who invested some $500 million of their own funds in Madoffs venture," FT added.
HSBC's exposure stemmed from loans it provided to institutional clients, mainly hedge funds, that wanted to invest with Madoff, the newspaper said quoting people close to the situation.
Under the typical terms of these deals, if the US authorities recover any funds from Mr Madoff, HSBC would be paid first, with its clients suffering the first tranche of losses.
HSBC on Sunday had said that it was "carefully reviewing" its position but expected its final exposure to Madoffs firm not to be "material", the daily said.
Some of the other major victims of the Bernard Madoff's fraud case include France's BNP Paribas, Spain's Banco Santander, Japan's Nomura, Royal Bank of Scotland and Man Group.
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