Several Banks Offer Compensation to Madoff Investors

Several banks involved in the Madoff scandal have offered forms of compensation to investors.  As previously discussed here, Spanish bank Santander offered to repay victims in the alleged Madoff fraud to avoid lawsuits.

Other banks, however, have also made offers.  FT reports that these banks include:

  • Celfin Capital, a mid-sized investment bank in Chile, which announced a restitution plan for its  clients on December 20.  It is reportedly returning about $11 million to 100 investors.
  • The National Bank of Kuwait, which has returned $50m to affected investors.

Santander has offered to repay €1.38 billion in the form of Santander preference shares, paying an annual 2 per cent, which could be bought back by the bank after 10 years.  The offer was only extended to individual private banking clients, not to institutional investors. In exchange, clients would have to agree not to sue.

Read the FT article