December 17, 2008

Banks caught up in a fraud

Some of the largest names in the banking world have been caught up in massive $50 billion fraud; this has led to the person behind it, New York financier, Bernard Madoff on serious fraud charges.

Once again, some familiar names within the banking industry are listed as being involved in this fraud.

HSBC $1 billion
Royal Bank of Scotland $600 million
Santander $16 million

The fraud, which has been described as a massive pyramid scheme, has attracted a wide range of private investors too; the fraud was based out of his investment advisory business.

As if the banking sector had not been hit enough times over the last year, to have this come to light now really means that confidence in the banking industry and the people who are running the banks too.

The company has lost $50 billion, although the company had assets of between $200 and $300 million, which Madoff wanted, distributed to employees and family.

Source [CNN]