ABN Says Picard's Got The Wrong Bank

Dec 15 2010 | 10:08am ET

You can partially cross ABN Amro off the list of banks targeted by the court-appointed receiver in the Bernard Madoff case.

The Dutch banking giant was among seven banks sued for more than $1 billion by Irving Picard on Thursday. But ABN Amro says that the complaint actually targets a pair of businesses it sold to the Royal Bank of Scotland Group.

"It has become clear" that Picard's US$270 claim against ABN is actually against RBS, the bank said. RBS, for its part, said it "will vigorously defend" against Picard's lawsuit.

ABN Amro was forced to sell the units after it was nationalized by the Dutch government during the banking crisis.

The bank, however, is not exactly out of Picard's sites, thanks to an acquisition of its own. The Madoff receiver is still seeking US$230 million from Prime Fund Solutions, the prime brokerage unit it acquired when it merged with the similarly-nationalized Fortis Bank Nederland.

ABN is in the process of selling PFS to Credit Suisse. But last month ABN said the deal will not close until next year; it had been expected to go through by the end of this year.


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