HSBC to Set Aside $1.1 Billion After Madoff Verdict

HSBC announced Monday it will allocate a $1.1 billion provision in its third-quarter results following a court ruling in Luxembourg related to the infamous Bernard Madoff investment fraud case. The bank faces significant financial consequences due to its exposure to the Ponzi scheme.


HSBC to Set Aside $1.1 Billion After Madoff Verdict

The British HSBC bank announced the creation of a reserve of 1.1 million dollars in the Luxembourg branch linked to the decision of the Luxembourg court, invested in the development of the international financial center, linked with the client of the bank Bernard Madoff. The reserve will be used in the financial results of the next quarter of the current year. The Luxembourg court's decision is based on the fact that the bank did not take sufficient measures to verify the client's solvency, which could lead to the bankruptcy of the massive scheme, affecting the upper classes of investors in millions of dollars. The ruling in Luxembourg was the last episode in a series of processes, which began ten years ago, one of the most resounding scandals in the financial history of the XXI century. The following organizations have already been fined by the HSBC authorities: "Our main task is to enforce all the legal aspects of this resolution. Our main task is to focus on clients and counterparties, and also to continue to work on improving the system control and compliance."

Notably, that Madava, the defendant, was sentenced to 150 years in prison in 2010, becoming one of the most resounding scandals in the financial history of the XXI century. The following organizations have been fined by the HSBC authorities: the most resounding scandals in the financial history of the XXI century, one of the most resounding scandals in the financial history of the XXI century. The following organizations have been fined by the HSBC authorities: the most resounding scandals in the financial history of the XXI century, one of the most resounding scandals in the financial history of the XXI century.

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