Tokyo: Nomura Holdings, Japan’s biggest brokerage, said on Monday it had a $303 million exposure related to Wall Street trader Bernard Madoff, but the impact on its capital would be limited.
Madoff, a former chairman of the Nasdaq stock market, was arrested in New York on Thursday and charged with orchestrating a huge financial fraud through an investment-advisory arm of market-making firm Bernard L Madoff Investment Securities LLC.
A spokesman at Nomura, which in September bought Lehman Brothers’ operations in the Asia-Pacific, Europe and the Middle East, said it still does not know the exact earnings impact from the exposure.
Nomura’s finances have already been damaged by turmoil in financial markets. In October it posted a net loss of 149.5 billion yen for the April-September first half, and warned of potential losses ahead on its exposure to crisis-hit Iceland and stake in Fortress Investment Group.
Madoff’s advisory business had $17.1 billion of assets under management but many investors may have had indirect exposure by investing through the hedge funds and other of the firm’s clients. He has said losses were about $50 billion.
BNP Paribas puts Madoff exposure at $466.9 million
French bank BNP Paribas has estimated its risk exposure to hedge funds managed by arrested Wall Street trader Bernard Madoff could lead to $466.9 million in losses.
In a brief statement on Sunday, the euro zone’s largest bank said it has “no investment of its own” in Madoff’s hedge funds but “does have risk exposure to these funds through its trading business and collateralized lending to funds of hedge funds.”
Madoff, a respected Wall Street money manger, was detained on Thursday in what prosecutors say was a $50 billion scheme to defraud investors.
Media reports have said Europe’s second-largest banking consortium, Spain’s Grupo Santander SA, also has extensive exposure to Madoff’s funds. (Source: AP)