EFG says has $130 mln of client exposure to Madoff

ZURICH Fri Dec 19, 2008 2:23pm GMT

Related Topics

Quotes

   

ZURICH Dec 19 (Reuters) - Swiss private bank EFG International (EFGN.S) said on Friday its private banking clients had about $130 million of exposure to the companies of Bernard Madoff, who was arrested last week for fraud.

EFG said it had no exposure itself to any fund managed or advised by former Nasdaq chairman Madoff, who stands accused of a $50 billion fraud.

"Within discretionary portfolios, some private banking clients have exposure to third party funds that have invested in Madoff," EFG said in a statement.

"The amount involved is circa $130 million in well diversified portfolios which are predominantly multi-manager fund-based," the group said.

The exposure would typically be a low single digit percentage of a client's portfolio, a spokesman from EFG said.

The bank also said that it held, in custody for private banking clients, third party funds that had invested in Madoff the equivalent of 0.3 percent of total clients' assets under management of 100.9 billion Swiss franc as of June 30. This is equivalent to about 303 million Swiss francs ($275 million).

EFG International said it did not expect the scandal to have an impact on its profits in 2008 or in future years. (Reporting by Lisa Jucca, editing by Will Waterman)

FILED UNDER: