![Risk.net](https://www.risk.net/sites/default/files/styles/print_logo/public/2018-09/print-logo.png?itok=1TpHrpuP)
Santander settles over Madoff
![sp-jan09-12-gif sp-jan09-12-gif](/sites/default/files/styles/landscape_750_463/public/import/IMG/659/79659/sp-jan09-12-gif3132-580x358.gif.webp?itok=r0OeslbB)
NEW YORK - Spain's largest bank, Banco Santander, has agreed to settle claims related to investments in Bernard Madoff's scheme by two hedge funds operated by its Optimal Investment Services unit. The bank will pay $235 million in an out-of-court deal to the trustee liquidating Madoff's money-management firm.
The settlement was reached in an attempt to avoid a lawsuit by the trustee, Irving Picard, who has been suing Madoff's biggest investors. It is equal to 85% of Picard's claim against Santander.
"We hope that other entities against which we have claims will likewise come forward to settle those claims for the benefit of all of Madoff's victims," Picard said in a statement.
Santander said in a statement: "The funds' potential clawback liability did not imply any wrongdoing by the funds. The trustee concluded that their conduct does not provide grounds to assert any claim against the Optimal companies or any other entity of the Santander group, other than the clawback claims."
Picard has now collected $1.22billion to help repay Madoff's victims. He has also filed a clawback lawsuit against three Fairfield Greenwich Group hedge funds for the return of $3.54 billion withdrawn before Madoff's fraud unravelled. This joins several other suits filed by Picard that seek a total of $10.1 billion from investors he claims should have known of the fraud. the trustee is also seeking about $735 million from Madoff customers outside of court.
Madoff pleaded guilty to running a $65 billion ponzi scheme and will be sentenced in July.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Looming US Basel endgame redraft sparks calls to save IRB
Experts say 20 years of data makes credit risk models more appropriate than standardised approach
Cool heads must guide financial regulation of climate risk
Supervisors can’t simply rely on ‘magical thinking’ of market discipline, says Sergio Scandizzo
Markets worry EU’s reporting simplification will add to burden
Rather than reducing firms’ obligations, market participants fear it could end up increasing requirements
EU banks show basic instinct for credit valuation adjustments
Simpler approach to CVA appeals even to some already using more complex models for counterparty risk
Bank of England wants dynamic Emir for UK clearing houses
Review won’t just photocopy EU legislation, as BoE seeks to make rules simpler and adaptable
Big banks could be sidelined from future rescue deals – FSB
Exacerbation of too-big-to-fail means G-Sibs could already be too large to take extra assets
More guidance, less enforcement: the SEC under Paul Atkins
Current and former insiders expect clearer crypto rules and an end to regulatory violation sweeps
During Trump turbulence, value-at-risk may go pop
Trading risk models have been trained in quiet markets, and volatility is now looming