June 5 — UBS AG, HSBC Holdings Plc and other custodian banks for Luxembourg-based mutual funds have “clear” obligations to compensate investors for losses tied to Bernard Madoff, Treasury Minister Luc Frieden said.

“The principle is very clear: the custodian bank has to indemnify investors,” Frieden, 45, said in an interview at the Luxembourg Ministry of Finance. “Regarding the law, the situation is not that difficult: the custodian bank has a responsibility to make restitution for these assets.”

The comments may put pressure on UBS and HSBC to participate in Frieden’s plan to settle dozens of lawsuits over Luxembourg mutual funds that invested with Madoff.

Read the entire article here

Related posts:

1. Court says HSBC Must Disclose Madoff Details
2. UPDATE – HSBC and the Madoff Ponzi Scheme
3. HSBC wanted free easy money, might owe Madoff investors instead
4. HSBC facing lawsuits in Ireland related to Madoff
5. HSBC works through 3 new lawsuits worth over $3 Billion