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Madoff & Credit Suisse – how did a major bank lose $925.9 mln?

The Times broke a story which based on “Internal forecasts” the reported losses of investments made into Madoff funds by Credit Suisse clients could reach $925 million. This follows the admission that Swiss bank UBS lost $1.4 billion.

Credit Suisse are standing firm on their statement that they didn’t have anything to do with promoting or selling Madoff investments. While admitting that CS clients lost money, CS spokesman, Jan Vonder Muehll, states:

Credit Suisse did not actively sell stakes in Madoff funds to the bank’s clients and there were no Madoff funds on the Credit Suisse ‘recommended’ list. Also, no fund of hedge funds structured by Credit Suisse contained Madoff funds.

With this information, it’s unclear where the money was lost. Most people are pointing towards feeder funds, which where set up to extend the capacity for Madoff funds.

In other Madoff news:

About Aaron Wormus

Aaron Wormus works as the Managing Director of Website Creation at HedgeCo Networks and has worked with HedgeCo since the end of 2004. Prior to working with HedgeCo Networks, Aaron managed a private consulting firm based in Frankfurt, Germany. During this time he worked implementing back-end systems for clients ranging from telecommunications companies to mining companies and Silicon Valley software distributors. Aaron Wormus is a published author who has studied Information Technology and Journalism in Finland. His written work has been published in various technology magazines, translated into 5 European languages, as well as published book. Aaron regularly speaks at PHP Programming conferences, and is involved in the organization of his local technology user group.
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2 Responses to Madoff & Credit Suisse – how did a major bank lose $925.9 mln?

  1. Pingback: A Day in Paradise » Madoff update

  2. lopas says:

    Thanks for the great post!

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