Merger Canceled in Madoff Fallout
WNYC News | Jul 12, 2010
New York, NY —
A Swiss bank has canceled its merger with a U.S. investment fund linked to Wall Street money manager Bernard Madoff, who's accused of securities fraud.
Banque Benedict Hentsch says the termination of its three-month partnership with New York-based Fairfield Greenwich Group is immediate.
On Friday, the Geneva bank disclosed it had $47.5 million of client assets at risk in the Madoff affair. Fairfield Greenwich said it had $7.5 billion in investments linked to Madoff.
Madoff, a former Nasdaq stock market chairman, has been accused by U.S. authorities of running a phony investment business that lost $50 billion.
