Fortis Bank in Netherlands could lose up to euro1B in alleged Madoff case - Fortis Bank of Netherlands -Victim of Madoff

Fortis could lose up to euro 1B in alleged Madoff case

THE HAGUE, Netherlands – Troubled Dutch bank Fortis stands to lose up to euro1 billion ($1.35 billion) as a result of the fraudulent investment scheme allegedly orchestrated by Wall Street money manager Bernard Madoff, Fortis said in a statement late Monday.
Fortis Bank Nederland (Holding) NV said it has no direct exposure to Bernard Madoff Securities, the investment firm at the center of the alleged multibillion dollar fraud, but added it could lose money through funds it lends to.
The recently nationalized bank said, "parts of the group do have a risk exposure to certain funds it provides collateralized lending to.
"If, as a result of the alleged fraud, the value of the assets of these funds is nil and the respective clients cannot meet their obligations, Fortis Bank Nederland (Holding) NV's loss could amount to around euro850 million to euro1 billion ($1.15 billion to $1.35 billion)."
The bank said its continuity and that of its subsidiaries, "is not at stake in any way."
The potential losses are the latest setback to hit Fortis, whose dramatic decline began after it bought euro24 billion worth of assets in the takeover of ABN Amro in 2007.
As credit markets seized up and Fortis' attempts to shore up its cash position by selling assets failed, its future looked increasingly at risk and depositors departed in droves.
The Dutch government bought all Fortis's Dutch operations, including ABN Amro, for euro16.8 billion on Oct. 3. Two days later, the Belgium government nationalized Fortis in Belgium, selling a 75 percent stake of Fortis' Belgian banking operations and all of its Belgian insurance operations to BNP Paribas for euro14.5 billion. That deal was thrown into doubt by a Belgian court ruling last week that said shareholders should have been consulted first.
The Belgian arm of Fortis said in a statement it had "only very limited" indirect exposure to the Madoff scandal and that it was not expected to have any "negative material impact."