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http://online.wsj.com/article/SB1000...307635764.html
"Some of the world's biggest banks are jumping into a multibillion-dollar market that buys up victims' claims in the Bernard Madoff Ponzi scheme, including two banks that have been sued in connection with the fraud.
The buyers of claims offer defrauded investors who want immediate cash a fraction of what they are owed, intending to profit by collecting a larger payout when the settlement is made final, which can take years.
Investors were receiving offers of just 20 cents to 30 cents on the dollar a year ago, when it was unclear how much money would be recovered. Now, with billions already extracted through settlements reached by a court-appointed trustee and the promise of billions more, deep-pocketed banks are moving in, pushing the offers on claims to roughly 70 cents to 75 cents on the dollar.
Even at the higher offers, the bidders are hoping to make millions of dollars on larger claims.
...
While perfectly legal, the situation reflects Wall Street's penchant for finding a way to profit from almost any upheaval.
..."
In bold, for sure.
"Some of the world's biggest banks are jumping into a multibillion-dollar market that buys up victims' claims in the Bernard Madoff Ponzi scheme, including two banks that have been sued in connection with the fraud.
The buyers of claims offer defrauded investors who want immediate cash a fraction of what they are owed, intending to profit by collecting a larger payout when the settlement is made final, which can take years.
Investors were receiving offers of just 20 cents to 30 cents on the dollar a year ago, when it was unclear how much money would be recovered. Now, with billions already extracted through settlements reached by a court-appointed trustee and the promise of billions more, deep-pocketed banks are moving in, pushing the offers on claims to roughly 70 cents to 75 cents on the dollar.
Even at the higher offers, the bidders are hoping to make millions of dollars on larger claims.
...
While perfectly legal, the situation reflects Wall Street's penchant for finding a way to profit from almost any upheaval.
..."
In bold, for sure.
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