HSBC's Madoff exposure could be US$1b
16-12-2008
The banking giant, HSBC, says it has a potential exposure of about one billion US dollar to a giant pyramid scheme run by Wall Street veteran Bernard Madoff. HSBC is among several big banks which face massive losses arising from the collapse of Mr Madoff's hedge fund. In a statement, HSBC confirms that it has provided financing to a small number of institutional clients, who invested in funds of Madoff Investment Securities, which is under criminal investigation in the United States. It says it also has custody clients who have invested with Madoff, though it doesn't believe these custodial arrangement would be a source of exposure to the Group. Major international investors such as Spain's Santander, French bank BNP Paribas and Japan's Nomura had all revealed they face potential losses from the collapse of the fund.
