(adds Fortis assertion that continuity of the bank not at stake; details on Fortis)
THE HAGUE (AFP)--Fortis Bank Netherlands (FORA.AE) said Monday it stands to lose up to EUR1 in the suspected fraud scam run by New York trader Bernard Madoff.
"While Fortis Bank Nederland (Holding) N.V. and its subsidiaries have no direct exposure to Bernard Madoff Investment Securities LLC, parts of the group do have a risk exposure to certain funds it provides collateralized lending to," the bank said in a statement.
"If, as a result of the alleged fraud, the value of the assets of these funds is nil and the respective clients cannot meet their obligations, Fortis Bank Nederland (Holding) N.V.'s loss could amount to around EUR850 million to EUR1 billion euros."
Fortis was dismantled in October, with its Dutch assets nationalized by the Netherlands government for EUR16.8 billion and its Belgian and Luxembourg activities sold to French bank BNP Paribas (13110.FR).
Fortis Bank Netherlands is the remaining Dutch holding company for a variety of banking and financial services.
"The continuity of Fortis Bank Nederland (Holding) N.V. and its subsidiaries is not at stake in any way," said the statement.
Madoff, a 70-year-old Wall Street veteran who was arrested Thursday, is alleged by U.D. prosecutors to have confessed to defrauding investors of $50 billion in a giant pyramid scheme that collapsed amid the global financial crisis.
-Dow Jones Newswires, 201-938-5500
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Publié le 15 Décembre 2008 Copyright © 2008 Dowjones