The Madoff-o-Meter | FT Alphaville

The Madoff-o-Meter

Much in the Madoff scandal remains a mystery. We still don’t know, for example, whether Bernie really lost a full $50bn as the court documents claim, or precisely how much money was under management when he made THAT confession.

So we will try and keep a tally going here. Feel free to update – via the comments.

As of Monday morning…

RBS – $600m.

The Royal Bank of Scotland Group plc (RBS) said it had exposure through trading and collateralised lending to funds of hedge funds invested with Bernard L Madoff Investment Securities LLC. If as a result of the alleged fraud the value of the assets of these hedge funds is nil, RBS’s potential loss could amount to approximately £400 million.

Man Group – $360m

MF has approximately $360m invested in two funds that are directly or indirectly sub-advised by Madoff Securities and for which Madoff Securities acts as broker/dealer executing the investment strategy. This investment represents approximately 1.5% of RMF’s funds under management, and 0.5% of funds under management for Man Group as a whole*.

Banco Santander $3.1bn (note the specious suggestion that it is the clients’ problem, not the bank’s).

The exposition of Grupo Santander clients in Optimal Strategic is EUR 2.33 billion, of which EUR 2.01 billion belong to institutional investors and international private banking customers. The remaining EUR 320 million, the large majority of which are structured products partially indexed to the performance of Optimal Strategic, are part of the investment portfolios of the Group private banking customers in Spain, who are qualifying investors.

Grupo Santander has a proprietary position of EUR 17 million through another investment fund.

HSBC – $1bn

In the interests of clarity, HSBC confirms that it has provided financing to a small number of institutional clients who invested in funds with Madoff. On the basis of information presently available, HSBC is of the view that the potential exposure under these financing transactions is in the region of US$1 billion.

BNP Paribas – $470m

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 collateralized lending to funds of hedge funds. If, as a result of the alleged fraud, the value of the assets of these hedge funds is nil, BNP Paribas’ loss could amount to around 350 million euros.

Natixis – $600m

French investment bank Natixis Monday said it could be an indirect victim of the alleged fraud by Bernard Madoff Investment Securities LLC, and estimated its indirect net maximum exposure at around EUR450 million. In a statement, Natixis said it didn’t make direct investment for its own account in funds managed by Madoff, but that some investments made on behalf of its customers in several funds of international repute could have ended up being managed by Madoff.

Unicredit – $100m

With reference to the news of fraud and incrimination of Bernard L. Madoff, UniCredit communicates that its own exposure is circa Euro 75 million. Relative to its asset management division Pioneer Investments, UniCredit confirms that certain funds belonging to its alternative investments unit have been indirectly exposed to Madoff through feeder funds. However, these funds are not included in any portfolio of the Italian funds of hedge funds. The exposure of Italian clients is therefore equal to zero.

Nomura – $303m

TOKYO, Dec 15 (Reuters) – Nomura Holdings, Japan’s biggest brokerage, said on Monday it had a 27.5 billion yen ($303 million) exposure related to Bernard Madoff, but added impact on the firm’s capital was limited.

Bénédict Hentsch – $48m

The founding shareholders of the Bank have terminated their partnership with the Fairfield Greenwich Group. They have concluded an agreement with the latter whereby they have repurchased the total capital of the Bank.

Thus, the Bank regains its complete independence as well as its name, Banque Bénédict Hentsch & Cie SA. The transaction signed yesterday December 14, 2008 is conditional upon approval of the Swiss Federal Banking Commission. The bank further confirms that total exposure of its clients in relation to the products managed by Bernard L. Madoff represent an amount of CHF 56 million, less than 5% of the total assets under management by the Bank. The capital of the Bank is not at risk.

So that’s a total of $6.58bn reported on Monday.

Together with the weekend’s tally…

Fairfield Greenwich – $7.5 billion

As of November 1, 2008, assets under management at FGG totaled approximately $14.1 billion, of which approximately $7.5 billion was invested in vehicles connected to Bernard L. Madoff Investment Securities.

Kingate – $2.5bn

Tremont Capital Management- $1bn (reportedly)

Bramdean – (9.5% of assets under management)

Bramdean Alternatives Limited (the ‘Company’) has two holdings that maintain trading accounts with Bernard L. Madoff Investment Securities LLC (‘Madoff’), Defender Ltd. and Rye Select Broad Market XL Portfolio Ltd., representing approximately 9.5% of the Company’s net asset value as at 31 October 2008.

Reichmuth Matterhorn – $327m

Access International Advisers – $1.8bn (Bloomberg)

Ascot Partners – $1.8bn (Bloomberg)

Union Bancaire Privee – $850m (Reuters)

Maxam Capital Mangaement $280m (reportedly)

Pioneer Investments – $280m (reportedly)

EIM Group – $230m (Wall Street Journal)

Benbassat & Cie – $935m (Reuters)

So, that’s a further $17.5bn, making the….


Related link:
Madoff – Still Counting – Long Room