Good morning from the City AM liveblog team.
It may have been more than 15 years since he was convicted and four years since he died, but legendary fraudster Bernie Madoff is still making headlines.
Yesterday it was the turn of British banking giant HSBC to unveil the scale of its exposure to business connected with Madoff’s infamous ponzi scheme.
The FTSE 100 firm has set aside just over a billion dollars following the resolution of an investment fraud case in Luxembourg.
HSBC faced a lawsuit from Cayman Islands-based ‘feeder fund’ Herald Fund SPC in 2009, which accused the bank of claiming restitution of securities and cash that it said was lost in the Madoff fraud scandal.
A Luxembourg court has rejected HSBC’s appeal in respect of Herald’s securities claim, but did accept it in reference to cash restitution.
Following the verdict, the banking titan has said it will make a $1.1bn (£830m) provision in its third quarter results.
HSBC’s Luxembourg Unit acted as a custodian and administrator to several offshore ‘feeder funds’ that invested with Bernard L. Madoff Investment securities.
In helpful timing, this morning HSBC reveals the scale of the fallout from the farago in its third quarter results.
Here’s a summary of our top headlines from yesterday.
Thousands of jobs at risk as Petrofac appoints administrators
FTSE 100 giant Natwest shares surge to 15-year high
EY UK bounces back with growth in most divisions but consulting lags
Labour to use tech to ‘shock’ UK economy into growth
Reeves risks Black Market Britain with gambling tax hike