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Banking Law

Madoff Trustee Sues Third Major Bank, Seeks $9B

Posted Dec 6, 2010 7:19 AM CDT
By Debra Cassens Weiss

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The trustee seeking to recover money for Bernard Madoff investors has filed a third multbillion-dollar lawsuit against a major bank.

Trustee Irving Picard sued London-based HSBC on Sunday, along with about 60 other defendants, including hedge funds and HSBC subsidiaries, the New York Times reports. The complaint was filed in federal bankruptcy court in Manhattan.

The suit alleges the Madoff fraud “could not have been accomplished or perpetuated unless the HSBC defendants agreed to look the other way and to pretend that they were ensuring the existence of assets and trades when, in fact, they did no such thing.”

Picard has already sued Madoff’s primary bank, JPMorgan Chase & Co., and the Swiss-based bank UBS. Bankruptcy deadlines give him another week to file additional suits.

The Am Law Daily has a roundup of prior suits.

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