Tossing and turning

27 May 2009 By Fiona Maharg-Bravo

The Spanish bank is handing back $235m that it redeemed from the disgraced investment manager 90 days before his arrest. In doing so, it has made its peace with Madoff’s litigious trustee. Others in the firing line won t find it easy to follow suit.

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Santander, the Spanish bank, has agreed to pay $235m to settle a legal claim against one if its units by Irving Picard, the trustee seeking to recover money for Bernard Madoff's victims. The money represented 85% of funds redeemed by Santander's Optimal unit in the 90 days preceding Madoff´s arrest. Picard has so far collected $1.2bn to be paid out to victims of the fraud, including Optimal. Santander's Optimal funds are pursuing $1.6bn of claims against Madoff's businesses.

Picard he has filed suits against hedge funds and investors who profited from Madoff's operation, seeking the return of $12bn, according to the Financial Times. In April, Santander said about 93% of affected clients had accepted the offer.

Separately, Sanatnder said it would rebrand all its UK units under the Santander brand name from 2010.

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Separately, Sanatnder said it would rebrand all its UK units under the Santander brand name from 2010.

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