Worlds biggest ponzi scam - $50 bn fraud wall street scam

[italkcash]

Who ever said ponzi scams are still not valuable (also known as HYIP) have not noticed the latest news from wall street. The name is Bernard Madoff and makes any other scam look like someone was playing with pennies. This guy ran a hedge fund so successfull that even banks invested their money in the hedge fund, among those were Spains largest, Santander and BNP Paribas, France's biggest listed bank.

The problem with his hedge fund was basically that he used newly invested money to pay off existing investors, a clear ponzi scam strategy.

US Prosecutors say Mr Madoff, a former head of the Nasdaq stock market, masterminded a fraud of massive proportions through his hedge fund and investment advisory business.



"While BNP Paribas has no investment of its own in the hedge funds managed by Bernard Madoff Investment Services, it does have risk exposure to these funds through its trading business and collateralised lending to funds of hedge funds," BNP said in a statement.
Santander said its exposure to Madoff was through its investment fund Optimal.



UK-based asset management firm Bramdean Alternatives accused US regulators of "systemic failures".
The firm saw its share value drop by over 35% after it revealed that about £21m - nearly 10% of its holding - was exposed to the New York broker.
"It is astonishing that this apparent fraud seems to have been continuing for so long, possibly for decades, while investors have continued to invest more money into the Madoff funds in good faith," the firm said.
"The allegations made appear to point to a systemic failure of the regulatory and securities markets regime in the US."

[Italkcash Newsfeed]

Danske Bank hit hard by the Madoff scandale. The dust has just settled before the next scandale hits the nordic banker Danske Bank. After a loss of 50 mio UDS on the IT Factory scam another scam hits the bank. Danske Bank could have lost up in the area of 100 mio US dollars in the scam. The stock fell to 58.5 DKK a share on the announcement. This is the lowest level in many years.


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