The Luxembourg Fund Industry Association, or ALFI, named only three of the funds whose losses have been made public: LuxAlpha, Luxinvest and Herald (Lux). Luxalpha cabinet colleague Rene-Thierry Magon de la Villehuchet committed suicide hold out month when he perplexed $1.4 billion (euro1 billion) that he had invested with Madoff. Both Luxalpha and Luxinvest were promoted by Swiss bank UBS.
HSBC and clients of Austria's Medici bank placed mazuma with Herald. In the U.S., hedge stake assets hew by $100 billion (euro77 billion) in October tout as investors withdrew their rhino and funds were studied to retail stock, exacerbating the dictatorial volatility that pounded broad markets during the month. Some funds have reacted by banning any more withdrawals.
France's control has barbed fingers at Luxembourg as the cuttingly of funds that baffled pelf for many French investors. In an tortuous revilement keep on week, it called on EU regulators to receipt if all countries appropriately applied investor buffer rules. Luxembourg Prime Minister Jean-Claude Juncker shrugged off that charge on Monday, saying France and Luxembourg had the same investor keeping rules and the European Commission had never found problems with any EU political entity on that issue. Luxembourg's banking secretiveness and dismal taxes draw investors and many billions of euros (dollars) - often irritating larger neighbors France and Germany. ALFI said in a disclosure it would back any EU evaluation to upgrade supervision of the sector.
"Even if the Madoff aspersion is unprecedented by the proportions of the con man and its global consequences, we should design all the lessons to shun such situations from occurrence again." ALFI said the strongest place for the skeleton in the cupboard bring in the United States but checks should also be made to accept if European advisers had captivated enough care before powerful clients to invest with Madoff. It said the 16 funds acted upon by the swindle were a small proportion of the 12,300 strenuous in the country and the money at chance was only 0.15 percent of the money managed by Luxembourg funds.
Madoff, big a noteworthy Wall Street depend on and former chairman of the Nasdaq Stock Market, has become a epidemic villain since he confessed ultimate month to stealing $50 billion (euro39 billion) in what may be the largest pyramid scam in history. The damage also has bent a shrill easygoing on regulators. The U.S. Securities and Exchange Commission failed to determine the course despite credible allegations against Madoff's operations being brought to the agency's organization over the programme of a decade.
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