Two of the world’s largest banks will soon face a lawsuit for their role in the Madoff scheme.
UBS, which established the Luxalpha fund that fed money to Madoff, and HSBC, which has said its clients could have lost as much as $1 billion, are both on the business end of a lawsuit that will claim the banks were negligent when it came to Madoff.
From London’s City AM:
INVESTOR activist group Deminor is set to file a complaint against HSBC and UBS on behalf of their clients who have suffered losses from the Bernard Madoff fraud scandal.
Deminor is to legally challenge the banks, claiming that they neglected clients who suffered in the alleged $50bn Ponzi scheme, before the end of the month. Swiss bank UBS has said it did not recommend investments in Madoff products, but it did set up a Luxembourg-based fund called Luxalpha to allow its clients to invest in the products.
And HSBC referred to its 15 December statement, which said it had custody clients who had invested with Madoff.