Morning Brief: World’s banks reel from Madoff fallout
Top Story The fallout of New York trader Bernard Madoff’s alleged $50 billion Ponzi scheme is being felt throughout the global financial system. Major banks in the Netherlands, Spain, Britain, and Japan stand to lose millions, having invested in Madoff’s fund, or lent money to clients who did. Spain’s Santander faces some of the biggest ...
The fallout of New York trader Bernard Madoff’s alleged $50 billion Ponzi scheme is being felt throughout the global financial system. Major banks in the Netherlands, Spain, Britain, and Japan stand to lose millions, having invested in Madoff’s fund, or lent money to clients who did. Spain’s Santander faces some of the biggest losses with nearly over $3 billion in exposure to the scam.
The financial world was blindsided by the arrest of Madoff, a fixture of the New York financial world, though the Wall Street Journal reports that some analysts had been sounding the alarm about him for years. As one fund manager told the Financial Times, “This was the train wreck that happened in broad daylight.”
The Illinois legislature may launch impeachment proceedings against Gov. Rod Blagojevich.
A U.S. Department of Justice report said that Mexican drug gangs pose the largest organized crime threat to the United States.
JKF’s daughter Caroline Kennedy will seek Hillary Clinton’s New York senate seat.
U.S. Presidential Transition
A grand jury is investigating contributions to Obama’s commerce secretary-designate, Bill Richardson.
Thousands of Iraqis demonstrated for the release of the journalist who threw a shoe at President George W. Bush.
Former Iranian President Mohammed Khatami is considering running for president again.
The U.S. and United Arab Emirates finalized their nuclear cooperation deal.
A suspected U.S. missile strike killed two in northwest Pakistan.
Across east Asia, authorities are cracking down on graft.
The Association of Southeast Asian Nations, or ASEAN, has formed a charter.
French police disarmed an explosive device at a Paris department store. An Afghan group has claimed responsibility.
A Nazi skinhead group allegedly responsible for 18 murders was arrested in Moscow.
Italian police made more than 100 arrests in an anti-mafia crackdown.
South Africa’s former defense minister launched a new political party to challenge the African National Congress’s dominance.
The U.N.’s special envoy to Niger has gone missing.
Someone took a shot at Zimbabwe’s air force chief, a close ally of President Robert Mugabe.
The U.S. Federal Reserve meets. It is widely expected to cut interest rates.
The World Meteorological Organization will present its annual statement on the global climate.
German Chancellor Angela Merkel is scheduled to give an address on the global economy.
Photo: PIERRE-PHILIPPE MARCOU/AFP/Getty Images
Joshua Keating is a former associate editor at Foreign Policy. Twitter: @joshuakeating
More from Foreign Policy
Chinese Hospitals Are Housing Another Deadly Outbreak
Authorities are covering up the spread of antibiotic-resistant pneumonia.
Henry Kissinger, Colossus on the World Stage
The late statesman was a master of realpolitik—whom some regarded as a war criminal.
The West’s False Choice in Ukraine
The crossroads is not between war and compromise, but between victory and defeat.
Washington wants to get tough on China, and the leaders of the House China Committee are in the driver’s seat.