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The Hellenic Radio (ERA): News in English, 08-12-16
From: The Hellenic Radio (ERA) <www.ert.gr/>
CONTENTS
[01] World Impact from Madoff Scandal
[01] World Impact from Madoff Scandal
European Central Bank. Jean-Claude Trichet appears concerned over
prospect of new drop in eurozone interest rates. In parallel, German
Chancellor Angela Merkel is drawing a new rescue plan with emphasis on
infrastructures. The US, which has just started assessing losses from
Madoff scandal, realizes the tenuity of the structure that has caused
the heaviest financial crisis in post war history. The loads of money
lost in the US pyramid are scaring.
French group "Credit Mutuel" announced on Tuesday that it had exposure
of up to 90 million euros making it one of the victims of the alleged
$50 billion fraud masterminded by former Nasdaq chairman, Bernard
Madoff. In its official announcement "Credit Mutuel" says that there
would be collateral damages from the drastically undervalued bonds
mounting to â¬90 million euros. We will do whatever possible to reduce
final losses."Swiss Life" insurance company also announced today that
it could suffer losses over 57.2 million euros in indirect exposure to
the same fraud. Our losses will come from our close cooperation with
private banks "Reichmuth", "UBP", "RMF".
Bank losses in Madoff Scandal A rising number of banks across Europe
detailed their potential losses from Madoff who allegedly set up a so
called Ponzi scheme, in which existing investors are paid out with
money from new clients not from actual investment returns. Spanish
Santander : $3,1 billions British HSBC: $1 billion French Natixis: $605
millions British RBOF: $601 millionsFrench BNP Paribas: $ 460 millions
Spanish BBVA: $400 millions JapaneseNomura: $ 225 millionsApart from
banks several prominent personalities and organizations are among
Madoff's victims, Steeve Spielberg, Mort Zokerman, New York Mets,
Philadelphia Eagles .While the US is trying to reverse economic
collapse with drop in Central Bank interest rate, IMF chairman
Dominique Strauss Khan fears that poverty will trigger social unrest
unless governments take economic measures. OPEK president in a
television interview ask for rise in oil prices. Europe is stormed by
lay offs. In Italy, 200.000 people working in auto industry are laid
off. In Britain 50.000 people in post offices fear lay offs. The White
House announced on Tuesday that it continues looking into all
possibilities to rescue automakers, underlining that all sides must
agree on compromises.
News item: 16798
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