Open

Coming up

Don't miss

Replay


LATEST SHOWS

THE WORLD THIS WEEK

The World This Week - 01 August 2014 (part 2)

Read more

MEDIAWATCH

Coverage of Gaza in the Israeli media

Read more

REPORTERS

1914-1918: The Depths of Hell

Read more

THE WORLD THIS WEEK

The World This Week - 01 August 2014

Read more

THE INTERVIEW

Exclusive: Israel's US ambassador speaks to FRANCE 24

Read more

#THE 51%

World War One: The war that changed women’s lives

Read more

FRANCE IN FOCUS

Ségolène Royal goes for green

Read more

THE OBSERVERS

A look back at some of the Observers' best stories

Read more

DEBATE

Argentina Defaults: Kirchner Cries Foul Over 'Vulture Funds' (part 2)

Read more

  • Hamas denies capturing Israeli soldier as Gaza truce lies in tatters

    Read more

  • Five things to know about the Ebola outbreak in West Africa

    Read more

  • Scores killed in China factory explosion

    Read more

  • Exclusive: Israel's US ambassador speaks to FRANCE 24

    Read more

  • Police chokehold caused NYC death, coroner rules

    Read more

  • France tops requests to erase online footprint, says Google

    Read more

  • Air France ground workers to strike on August 2

    Read more

  • Rogue general denies Islamist seizure of Benghazi

    Read more

  • Ugandan court strikes down anti-gay legislation

    Read more

  • 1914-1918: The Depths of Hell

    Read more

  • Regional summit to tackle deadly Ebola outbreak

    Read more

  • French hospital to open wine bar for terminally ill patients

    Read more

  • Video: Tipping is dying out in French café culture

    Read more

  • €2.5 million in cocaine ‘disappears’ from Paris police HQ

    Read more

  • Appeals court keeps French rogue trader Kerviel in jail

    Read more

Business

Santander says private investors will be reimbursed

Latest update : 2009-01-28

After investors filed a class action suit in a US court against Spanish bank Santander, hit hard by the Madoff fraud scandal, the bank has announced it will reimburse its private clients' original investment lost through the fraud.

AFP - Spanish bank Santander will reimburse 1.38 billion euros (1.82 billion dollars) to investors affected by a massive fraud scheme allegedly run by US financier Bernard Madoff, the bank said on Tuesday.

"This solution applies to its private banking clients and for the principle invested in Optimal Strategic, excluding returns, which results in a total amount of 1.38 billion euros," it said in a statement, referring to the bank's fund which was wholly invested with Madoff.

A class action suit was filed on Monday in a US court against Santander, the eurozone's largest bank, in the name of investors who say they lost money by investing in the fund, lawyers said earlier Tuesday.

"The group has taken this decision given the exceptional circumstances surrounding this case and based exclusively on commercial reasons, given the interest it has in maintaining its business relationship with these client," the bank said.

The offer does not apply to institutional investors who lost money by investing in the fund.

Private bank clients will be repayed the money they invested in the Madoff-linked fund in the form of Santander preference shares, which pay an annual two percent return and which could be bought back by the bank after 10 years.

The offer will cost Santander 500 million euros, a figure which will be absorbed in the bank's results for last year which will be presented on February 5, the statement said.

Santander, which has forecast a record net profit of 10 billion euros for 2008, has said its clients lost 2.3 billion euros in total due to investments in the fund.

Madoff, a former chairman of the Nasdaq stock market, was arrested last month after allegedly confessing to a 50-billion-dollar pyramid fraud.

Date created : 2009-01-27

COMMENT(S)