More Banks Reveal Madoff Exposure

Royal Bank of Scotland, Man Group and Nomura on Monday joined a growing list of financial groups acknowledging exposure to the alleged $50 billion fraud surrounding Wall Street trader Bernard Madoff, Reuters reported. A report in the Financial Times said HSBC Holdings Plc had emerged as one of the largest victims, with potential exposure of about $1 billion. RBS said its potential loss could amount to some 400 million pounds ($595 million), if it assumed that the value of its assets in market-making firm Bernard L. Madoff Investment Securities LLC were nil. Man Group estimated its exposure at $360 million. Natixis of France said it had as much as 450 million euros ($605 million) of exposure, and Italy's second-biggest bank, UniCredit SpA, revealed exposure of around 75 million euros. U.S. prosecutors and regulators have accused 70-year-old Madoff, a former chairman of the Nasdaq Stock Market, of masterminding a fraud through his investment advisory business, which managed at least one hedge fund. The scandal comes at a time when hedge funds are suffering from poor performance, impairing their vow of yielding money whichever way the market turns, and has caught out banks and wealthy individuals across the world. Read more.