HSBC Holdings emerged one of the largest victims of Bernaud Madoff’s alleged fraud, with potential exposure of about $1.5 billion, the Financial Times reported Monday, citing people close to the situation. A spokesman for HSBC in Hong Kong declined to comment.
Spain’s Banco Santander SA, France’s BNP Paribas and Japan’s Nomura Holdings were also reportedly among those exposed to funds run by Madoff, a former chairman of Nasdaq, who was arrested last week and charged with securities fraud in what Federal prosecutors called a multi-billion dollar Ponzi scheme. HSBC shares rose 3.5% in Hong Kong.
Japan’s top broker Nomura says on Monday it faced losses of up to 27.5 billion yen (302 million dollars) due to the scandal surrounding New York investment manager Bernard Madoff, as reports The Economic Times.
“Nomura Holdings has confirmed that its Madoff-related exposure is worth 27.5 billion yen,” the group says in a statement. “The impact of the exposure is relatively limited in the light of our accounting capital.”
Madoff is alleged to have lost up to 50 billion dollars through a pyramid trading scheme which collapsed because of the financial crisis.
D.C.