New problems in the EU

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
14/12/2008 22:29

BNP PARIBAS AT RISK OF LOSING 350 MILLION EUROS IN MADOFF SCANDAL French bank BNP Paribas could lose up to 350 million euros in the scandal involving Wall Street broker Bernard Madoff, who was arrested last week. The collapse of Madoff's pyramid scheme could also jeopardise 2.3 billion euros at Spain's largest bank, Santander.

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
14/12/2008 22:32

$350 million seems like a lot to us... but to one of Europe's big banks it's not so bad.



But he's going to get a massive amount of hate mail....

AlsancakJack



Joined: 14/08/2008
Posts: 5762

Message Posted:
14/12/2008 22:33

Grouch

But how could it happen in the EU?

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
14/12/2008 22:44

Well you just find out his email address and send him abuse ;¬)

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
15/12/2008 09:23

Will he still get his contracted bonuses????



Will probably sue from his cell if he does not.



How can it happen AJ, I am sure you are being rhetorical on that. The EU is probably one of the most corrupt organisations.

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
15/12/2008 09:24

My own opinion of course!!!

DutchCrusader



Joined: 19/05/2008
Posts: 11281

Message Posted:
15/12/2008 09:34

RE Groucho, msg 2 : (...) $350 million seems like a lot to us... (...)



===> € (Euro) 350 million, like AJ wrote, seems even more to me...

Harold2555



Joined: 19/04/2008
Posts: 1139

Message Posted:
15/12/2008 09:42

This is an alleged fraud carried out in the US by a US Broker (the previously highly respected Bernard Madoff, former chairman of Nasdaq) involving Hedge funds which have either been invested in by other institutions including EU based banks or where banks have lent money in their normal course of business to institutions or funds that invested in the US.



It has nothing to do with the EU as a corrupt institution per se.



My understanding is that it was a hedge fund investment vehicle that promised high returns. I suspect that it was originally intended to be legitimate but nevertheless the position soon came to be that the returns to investors were being funded by new investors into the fund. This was similar to the situation with Barlow Clowes many years ago but on a greater scale. With the collapse of the financial markets new investment into Hedge funds has dried up bringing the whole pyramid crashing down.

Harold2555



Joined: 19/04/2008
Posts: 1139

Message Posted:
15/12/2008 09:44

The hole in the funds is said to be 50 billion Dollars and court appointed receivers are now managing the firm and working to unravel the positions to establish the size of the losses.



The exposure of the banks involved will be determined not only by the calculation of the hole but also by the robustness and ability to pay of the institutions they have lent to who have suffered losses.



Harold

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
15/12/2008 09:53

is santander not also connected to the halifax/bank of scotland?

Harold2555



Joined: 19/04/2008
Posts: 1139

Message Posted:
15/12/2008 10:01

Santander in the UK owns Abbey National, Alliance and Leicester and Bradford & Bingley



H