Correction: Stanford, not surprisingly, did have exposure to Madoff, per the SEC’s litigation complaint. Perhaps around $400k worth. The statement from Stanford was simply a lie.
Original post: Following the Madoff bust, everyone that was clean rushed out to tell clients that they were 100% Madoff free. Even Stanford Bank, which was just busted by the SEC:
According to the SEC’s complaint, the defendants have misrepresented to CD purchasers that their deposits are safe, falsely claiming that the bank re-invests client funds primarily in “liquid” financial instruments (the portfolio); monitors the portfolio through a team of 20-plus analysts; and is subject to yearly audits by Antiguan regulators. Recently, as the market absorbed the news of Bernard Madoff’s massive Ponzi scheme, SIB attempted to calm its own investors by falsely claiming the bank has no “direct or indirect” exposure to the Madoff scheme.
At least they were being honest. Unfortunately, Stanford’s clients had 100% exposure to Stanford.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.