ZURICH Dec 19 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)