Posted by: marisadedios | 15 December, 2008


Enrique, THIS IS THE LAST STRAW!, don’t you think?

Santander and BBVA hit by theMadoff scandal

The BBVA bank has admitted losses of up to 300 million € in the Bernard Madoff fraud based in the United States. The BBVA has said it acted setting up structures for other financial entities, but that they have no direct exposure to the broker’s company.
The statement follows the news that Santander has admitted losses of 2.33 billion among its clients. Shares in Santander fell 2% when the markets opened in Madrid this morning, with the number of people affected in Spain estimated at 1,000.
The Financial Times reports that some of the richest families in Spain have been affected by the collapse of the pyramid scheme.


BBVA may lose €300m from Madoff

ByVictor Mallet in Madrid

Published: Financial Times

BBVA, Spain’s second biggest bank, on Monday joined the growing list of private investors, fund managers and banks which have fallen victim to the alleged fraud committed by Bernard Madoff, saying it might have lost up to €300m.

In a regulatory filing, BBVA said its international clients had a total of €30m at risk through investment funds with positions in Bernard L. Madoff Investment Securities.

BBVA’s own €300m exposure arose from its role in creating structured products for other financial institutions and institutional investors. These products were indexed on third-party investment funds – including Pioneer Alternative Investment’s Primeo Fund, Fairfield Sentry and Kingate Global Fund – that placed money with Mr Madoff’s operation.

“If as a consequence of the fraud alleged by the SEC [the US Securities and Exchange Commission] the value of these funds were to be zero, the net maximum loss for BBVA arising from this activity would be in the region of €300m,” BBVA said.

Spanish regulators, as well as banks and investors, have launched investigations into the Madoff affair and worked with their lawyers over the weekend to assess likely losses.

Santander, BBVA’s larger Spanish rival and the biggest bank in the eurozone, announced over the weekend that its clients were exposed to the tune of €2.33bn through Optimal, its wholly-owned hedge funds management arm.

Santander said it had a proprietary exposure of €17m through an unnamed investment fund, but would not comment immediately on whether it was further exposed indirectly, for example through loans to its institutional or private clients.



  1. Will not be the last one Marisa. As all of us can check every day that we are living in a big fairy tale.

    The last one is when the US goverment says that the price of money is 0% from today. Are we going to play cards with notes (as it has not interest price)?. Too much for my ears!. What is hidden behind this measure?

    I remaind here waiting for more “straws”.

    Best wishes to everybody,

    E. Tasa

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