Madoff Investment Securities LLC
HSBC notes various articles appearing in the press today regarding the Group’s exposure to the alleged fraud at Madoff Investment Securities LLC (“Madoff”), which is under criminal investigation in the USA.
In the interests of clarity, HSBC confirms that it has provided financing to a small number of institutional clients who invested in funds with Madoff. On the basis of information presently available, HSBC is of the view that the potential exposure under these financing transactions is in the region of US$1 billion.
Also, in the context of its normal global custody business, HSBC has custody clients who have invested with Madoff. HSBC does not believe that these custodial arrangements should be a source of exposure to the Group.
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