Santander is offering €1.38bn to reimburse individual clients who lost money in the Bernard Madoff pyramid scheme, The Times reports.
Santander, which is the first to offer compensation for Madoff losses, said that it would repay the original investments of individual customers, but not institutions.
It said that it had acted with due diligence when one of its funds, Optimal Strategic US Equity, commissioned Mr Madoff to handle investments by some of its clients.
The bank said that it was offering to give clients back their initial investment, in the form of preference shares, but not interest accrued through Madoff funds.
CITIGROUP WON'T BE GETTING a new corporate jet after pressure from President Barack Obama over how banks are spending government bailout money, according to The Telegraph.
The bank, one of the largest in the country, reversed course, announcing that it will not take delivery of the jet it had planned to purchase before the credit crisis unfolded.
The White House reached out to Citigroup on Monday to reiterate President Obama's position that such jets are not "the best use of money at this point", calling them "outrageous" spending for a company getting taxpayer dollars.
A FUGITIVE FLORIDA HEDGE fund manager has surrendered to face charges of fiddling clients out of nearly $270m through an alleged Ponzi scheme, The Guardian reports.
Arthur Nadel, 76, turned himself in at an FBI office in Tampa after being sought for two weeks. He was charged with two counts of fraud over the finances of Scoop Management, an investment firm run out of a high street store in Sarasota.
According to US prosecutors, Nadel ran six funds and had accepted investments from clients of $270m (£190m). But paperwork showed that as of the end of 2008, the money had dwindled to $125,000.
Court documents reveal that Nadel resisted using an independent auditor and agreed to do so only when the alleged Wall Street fraudster Bernard Madoff was arrested last month. Nadel disappeared a day after one of his partners wrote to him about the appointment of an auditor.
PHILIP YEA ABRUPTLY QUIT as chief executive of 3i today as Britain's oldest private group reported a £682m fall in the value of its top 50 investments, reports The Times.
Mr Yea's departure, for which he is expected to receive about £790,000 in compensation for loss of office, was announced after it emerged that 3i was facing a possible creditor takeover at VNU Business Media Europe, the Dutch media business that it bought at the height of the buyout boom.
VNU, which 3i bought for €320 million in 2006, is believed to be close to breaking its banking covenants.
Mr Yea, who had run the business since July 2004, is to be succeeded by Michael Queen, who has run 3i's infrastructure fund since 2007.IFAonline
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation