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Consequences Of The Madoff Ponzi Scheme

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The Madoff’s Ponzi scheme had consequences which affected all the society. In pratical terms, those consequeces were extended to assets management firms, commercial banks, financial services companies, charity organisations, among others. It has concerned several parts of the globe, such as the United States, Spain, France, the Netherlands, Switzerland and several others.
Those consequences were either economic, phsycolgical, or financial. On the one hand, there were several companies affected by this scheme, such as Fairfield Greenwich Advisors, Tremont Capital Management, Bank Santander, Bank Medici, among others. Those, consequently, were accused by their clients of loosing their money, which had been invested in Madoff’s company. It
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This claims have generated losses for the company, through an agreement made and accepted by the majority of the clients, which consisted of giving these last ones $2 billion worth of preferred stock in Santander, which would pay a 2% dividend.
Also, Union Bancaire Privee, had claims against them, for investing in Madoff. The company agreed to pay $500 million to resolve Bernard Madoff trustee's claims, which resulted in a discharge of the client’s claims.
Bank Medicini was another bank to be sued by its customers in the US and in Austria. The bank reported that two of their funds were affected by Madoff’s scheme. This resulted in several consequences, besides the bank being sued, such as going for sale and being under investigation together with its founder.
Another bank, the Westport National Bank, was sued for helping and enhancing Madoff's fraud. It includes the investments made by the bank’s clients and another fees, totalizing $16.2 million.
The banks had indeed several damages, concerning legal problems due to their investments in Madoff company, which generated large economic losses. Moreover, there was a potential loss of credibility in each of this banks, as its clients feared to exploit their services, due to lack of confidence in those
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