Santander offers 1.38 billion euros to Madoff investors

Daily news headlines

MADRID - Spanish bank Santander has offered €1.38 billion in compensation to individual clients exposed to Bernard Madoff's $50 billion hedge fund-cum-ponzi scheme unearthed in December 2008.

The €1.38 billion (£1.28 billion) will be used to pay individual investors but not institutions caught by the Madoff pyramid scheme. Santander will issue the €1.38 billion in preferential shares with an annual 2% coupon to compensate its clients, costing €500 million.

Santander-operated hedge fund Optimal Strategic US Equity used Madoff's scheme to handle client investments, losing €2.3 billion to the fraudster. Paul Marshall, the co-founder of the Marshall Wace hedge fund, told a UK Treasury Committee yesterday that it is "very unlikely" a Madoff-type scheme could operate in the UK, but that hedge fund disclosures should be generally improved.

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here