HSBC unveiled largest losses due Ponzi scheme

One of the largest and almost invincible UK financial institution during the pre financial meltdown this year, HSBC has revealed its losses due to exposure to New York conman Bernard Madoff. The UK giant unveiled that its losses is estimately around $US1 billion, making it the largest exposure unveiled by UK firm so far.

This is based from the statement made ealier by the firm yesterday regarding its exposure to the alleged fraud.
"It confirms that it has provided financing to a small number of institutional clients who invested in funds with Madoff. Also, in the context of its normal global custody business, HSBC has custody clients who have invested with Madoff. HSBC does not believe that these custodial arrangements should be a source of exposure to the Group. "

Shares in Santander, the biggest bank in Spain and the second-largest in Europe after HSBC, plunged after the lender said it had an exposure of more than three billion dollars to Madoff Investment Securities in New York. British, French, Japanese and Spanish banks and funds said investments totalling billions of dollars (euros) could be wiped off their balance sheets by a scandal that is set to affect some of the richest people in the world.