Two banks exposed to '$50bn con'

News Type: Event — Seeded on Mon Dec 15, 2008 4:51 AM EST

Article Source: BBC News

world-news, fraud, banks, greed, hedge-funds, invest, nasdaq, wall-st, bnp-paribas, santander, high-returns

Two major European banks said they have exposure worth billions of dollars to a US broker accused of a $50bn (£33bn) Wall Street fraud scheme.

Spain's largest bank, Santander, which also owns three UK banks, said one of its funds had $3.1bn invested in the firm run by Bernard Madoff.

France's BNP Paribas estimated its exposure to be more than $460m.

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7.4

2.4

{"commentId":4430547,"authorDomain":"nigeriawhatisnew"}

Beauty

"it's all just one big lie", and that it was "basically, a giant Ponzi scheme"

Isn't hedge funds high tech pyramid schemes?

{"commentId":4430547,"threadId":"444374","contentId":"2214260","authorDomain":"nigeriawhatisnew"}

3 votes

#1 - Mon Dec 15, 2008 4:54 AM EST

{"commentId":4432995,"authorDomain":"mwestenfelder"}

Martin Westenfelder

The giant ponzi scheme?

Lets add-in the likes of Moody's and S&P credit rating agencies which already have the drumming-up for sub-prime MBS on their book.

Lets also count in the SEC which miraculously failed to see this $50bn ponzi building over an entire decade.

Lets add the WSJ and the investment bank analysts cheerleading the last lame US product from Dot-com to GM.

What have we?

The entire US financial community is a giant big mess; somewhere between criminal and criminally stupid.

To say it in the words of Nicola Horlick, boss of Bramdean investments as noting on SEC's resposibility speaking on the BBC today: "I think now it is very difficult for people to invest in things that are meant to be regulated in America, because they have fallen down on the job."

I would even go further: With all the players involved in the US whose only purpose seems to be fleezing global investors, it should be clear that investing in the US in general is something that one should be very careful about in the future. The US financial community has a criminal mindset and a regulator fallen asleep while US rating agencies are corrupt to the bone.

{"commentId":4432995,"threadId":"444374","contentId":"2214260","authorDomain":"mwestenfelder"}

6 votes

#2 - Mon Dec 15, 2008 11:07 AM EST

{"commentId":4433715,"authorDomain":"PamelaDrew"}

Pamela Drew

The US financial community has a criminal mindset and a regulator fallen asleep while US rating agencies are corrupt to the bone.

It is a National blight that has the seeds of deception growing from the heart of our politics. The financial regulators are in the same revolving door crime ring as the rest of Washington!

{"commentId":4433715,"threadId":"444374","contentId":"2214260","authorDomain":"PamelaDrew"}

6 votes

#2.1 - Mon Dec 15, 2008 11:58 AM EST

{"commentId":4440786,"authorDomain":"inghar2004"}

gladbutterfly

The return of Caveat Emptor. Not a good thing for a society that lives on investments.

{"commentId":4440786,"threadId":"444374","contentId":"2214260","authorDomain":"inghar2004"}

2 votes

#2.2 - Mon Dec 15, 2008 6:45 PM EST

{"commentId":4445453,"authorDomain":"nigeriawhatisnew"}

Beauty

The US financial community has a criminal mindset and a regulator fallen asleep while US rating agencies are corrupt to the bone.

Fine, we hate Gekko but the whole community a criminal mindset? No, the so called big five accountancy firms sure have to come out of their closet someday but I think it is the bad education and the types of must have MBAs that has been shamed here.

{"commentId":4445453,"threadId":"444374","contentId":"2214260","authorDomain":"nigeriawhatisnew"}

1 vote

#2.3 - Tue Dec 16, 2008 6:18 AM EST

{"commentId":4434248,"authorDomain":"ronco104"}

ron c. baker sr.

i agree with will rogers...'you can't cheat an honest man...'!!!

luv,

ron

{"commentId":4434248,"threadId":"444374","contentId":"2214260","authorDomain":"ronco104"}

1 vote

#3 - Mon Dec 15, 2008 12:34 PM EST

{"commentId":4435501,"authorDomain":"rosemore"}

rosemore

I agree with Mr. Westenfelder when he says, and I quote "The entire US financial community is a giant big mess; somewhere between criminal and criminally stupid".

We have a very serious problem in this country with the way things have been run for many years. Unfortunately not only have the American people have been blind to what is going on , but so has the world. Everyone wants to make a buck, but know one looks to see who or what is promising them the the "buck".

{"commentId":4435501,"threadId":"444374","contentId":"2214260","authorDomain":"rosemore"}

3 votes

#4 - Mon Dec 15, 2008 1:47 PM EST

{"canLink":false,"threadId":"444374","isPrivate":false}

Madoff's operations 'just one big lie'	Independent.co.uk	Mon Dec 15	0
Alleged Madoff fraud has worldwide exposure	Associated Press	Thu Dec 11	1
RBS and Man Group report exposure to Madoff fraud	Associated Press	Mon Dec 15	0
Judge toughens Madoff's home detention rules	Associated Press	Tue Dec 16	17
More Banks Reveal Madoff Exposure	The New York Times	Mon Dec 15	1

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Two banks exposed to '$50bn con'

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