HSBC agrees $62m Madoff deal

HSBC has agreed to shell out $62m to investors in a hedge fund that fed money to Bernard Madoff.

The group has become the first custodian bank to settle a class-action lawsuit connected to the scandal, after agreeing to pay around 20 cents on the dollar to investors in the Thema fund. Total losses in the fund were over $300m. HSBC, which served as custodian for the Irish-based fund, did not admit liability, the Financial Times reports. The deal involves only a small portion of HSBC's total exposure in connection with Madoff. When he was arrested in 2008, HSBC served as custodian or administrator for a number of funds that incurred real losses of about $4.3bn. HSBC is still ...