Nomura: $306 million exposed in Wall Street Ponzi scheme

Monday 15th December, 11:32 AM JST

TOKYO —

Nomura Holdings said Monday it has 27.5 billion yen in exposure to a recently uncovered Ponzi scheme set up by a Wall Street money manager.

Japan’s largest securities company is the latest victim to come forward to say it had been duped by Bernard Madoff. The once well-respected investor who served as chairman of the Nasdaq Stock Market was arrested Thursday in what prosecutors say was a $50 billion plan to defraud investors.

Nomura said in a statement any losses from the exposure were likely to be limited compared to its capital base.

A number of global financial institutions, hedge funds, charitable organizations and wealthy private investors have said they had exposure to Madoff’s investment pool.

French bank BNP Paribas said Sunday its risk exposure could lead to about $470 million in losses. Media reports have said Europe’s second-largest banking consortium, Spain’s Grupo Santander SA, also has extensive exposure to Madoff’s funds.

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Latest 15 of 18 Total Comments Show All

ironchef at 06:20 PM JST - 15th December

Nomura is screwed. $306 million is no small change, even compared to its capital base. Nomura is just inept in everything it does.
Sidwarwick at 06:25 PM JST - 15th December

Apparently he has just been released on bail of $10m. If you accosted a robber who had just stolen $500 out of your wallet, would you accept a promise from him not to run away if he gave you a bond of 10 cents? (Hint: He still has $499.90 of your money).
wanderlust at 06:34 PM JST - 15th December

On top of the costs sustained with their purchase of parts of Lehman Brothers, Nomura must be bleeding now...looks like they have overextended just like RBS. Will they come to J-Gov with the begging bowl, asking for a bailout?
franz75 at 07:09 PM JST - 15th December

wanderlust： yeah... they gonna dump Lehman Brothers rests.
some14some at 07:40 PM JST - 15th December

Why Nomura is in CRIME section? Business is no crime !
nandakandamanda at 11:50 PM JST - 15th December

The article mentions Santander. Anyone know anything about this?
efftta at 12:30 AM JST - 16th December

The article mentions Santander. Anyone know anything about this?

Santander is facing the biggest exposure so far, at over $3 bn
helloklitty at 12:51 AM JST - 16th December

Nomura is screwed. $306 million is no small change, even compared to its capital base. Nomura is just inept in everything it does.

Nomura is an excellent company. I highly recommend buying their stock.
Badsey at 06:18 AM JST - 16th December

I received a Ponzi decoder out of a cereal box when I was a child. I had no idea how it worked, but it could have saved Nomura 306M.

=it seems adults are easily trapped by childhood games.
GJDailleult at 08:42 AM JST - 16th December

Why Nomura is in CRIME section? Business is no crime !

But Ponzi schemes are, and Nomura is the victim of a Ponzi scheme. Simple.
ironchef at 11:49 AM JST - 16th December

helloklitty: Ah, gee ok, if you recommend their stock, i'll buy it!! NOT

give me some reasons why anyone should buy that stock.
timeon at 12:11 PM JST - 16th December

thieves stealing from thieves
telecasterplayer at 12:37 PM JST - 16th December

ALL of the 'victims'.. they just looked at those thoroughly implausible 10-12% yearly returns and that was all they needed to see. Incredible that it dawned on NO ONE to see how he did it. No one added the value of the 'investments' (if there were any) as long as the paper said, "you're rich!".
BBLeo at 06:14 PM JST - 16th December

Someone is on the wrong route. Anything that is punishable and handed over to police, prosecutor and court of law is 'CRIME.' Bernard Madoff defrauded and fraud is a 'crime.' In this case it is in business and still is the crime. Churches are also in business and if they are defrauding their own religion they are also responsible for crime. No one is above the law. Accused defrauded a security company and that is a crime punishable under the crime act. Security company in this instance is a victim of crime because of a 'crook money hungry scumbag.'
TooFarGone at 01:19 PM JST - 17th December

The biggest scam ever.

Naturally, the perp sought to buy off politicians.

So, which party did he go with?

"Very few media stories of the fraud perpetrated by former Nasdaq chairman Madoff mentions the heavy financial support that Madoff has donated to the Democrat Party. Campaign contributions by Madoff show many thousands of dollars going to Democrat candidates and causes. Including $100,000 to the Democratic Senatorial Campaign, thousands to Charles Rangel (D, NY), Charles Schumer (D, NY), and $6,000 to the Securities Industry and Financial Markets Association. Madoff also gave generously to Senator Frank Lautenberg (D, NJ) who runs a charitable foundation that invested with Madoff."

http://newsbusters.org/blogs/warner-todd-huston/2008/12/14/media-forgets-wall-street-rip-artist-big-democrat-donor