Banco Santander one of the world’s leading banks may not have been hit by the subprime mortgage crisis in the US earlier this year, but media around the world is confirming today that Banco Santander has been exposed to the fraud of Bernard Madoff through his company: “Bernard L. Madoff Investment Securities LLC”
Asiaone.com reports: “Investors around the world have scrambled since Friday to assess potential losses from an alleged US$50 billion (S$74.4 billion) fraud by Bernard Madoff, the prominent Wall Street trader arrested last week.”
One begins to wonder, is our money really safe in the banks? After all the CEO of Banco Santander was a complete “big mouth” a few weeks ago when he said that his bank didn’t get hit by the subprime mortgage crisis and its bad debt. Now just a few weeks after it turns out the bank has been hit by something new.
The NY Times publishes the following headline: “Prominent Trader Accused of Defrauding Clients“. The article goes on to confirming: “Regulators have not yet verified the scale of the fraud. But the criminal complaint filed against Mr. Madoff on Thursday in federal court in Manhattan reports that he estimated the losses at $50 billion.”
A report on Reuters.com details the exposure of Banco Santander to Madoff’s fraud: “…one of its investment funds had exposure of 2.33 billion euros to Madoff Securities, whose founder Bernard Madoff is accused of masterminding a $50 billion fraud.”