HSBC Settlement With Madoff Feeder Investors Junked

Sep 9 2011 | 12:39pm ET

HSBC can't escape liability for its role as the custodian for a Bernard Madoff feeder fund for a mere $62.5 million.

A federal judge in New York has rejected that proposed settlement with investors in the Thema International Fund. U.S. District Judge Richard Berman blasted a number of "obvious deficiencies," including a provision giving $10 million to the lawyers in the class action suit to sue non-settling defendants outside of the U.S.

The proposed settlement is "not fair, reasonable or adequate, even at this preliminary stage," Berman ruled.


In Depth

MiFID2 For U.S. Firms: Key Questions Answered

Feb 27 2017 | 4:54pm ET

The January 2018 deadline for implementation of the EU’s mammoth MiFID2 regulations...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of