Madoff ScandaL

Nomura says it could lose 302 mln dollars in Madoff scandal

Japan's top broker Nomura said Monday it faced losses of up to 27.5 billion yen (302 million dollars) due to the scandal surrounding New York investment manager Bernard Madoff.

"Nomura Holdings has confirmed that its Madoff-related exposure is worth 27.5 billion yen," the group said in a statement.

"The impact of the exposure is relatively limited in the light of our accounting capital," it said.

Madoff is alleged to have lost up to 50 billion dollars through a pyramid trading scheme which collapsed because of the financial crisis.

Despite the news, shares in Nomura Holdings rose 16 yen, or 2.40 percent, to 682 yen in early morning trade on the Tokyo Stock Exchange, as the benchmark Nikkei index surged more than four percent.

Several major financial institutions around the world have been hit by the fraud scandal, even as they struggle to weather the global financial crisis.

Spain's largest bank, Santander, said Sunday its investment fund unit may have lost 2.33 billion euros (3.1 billion dollars), while French bank BNP Paribas also revealed it could lose up to 350 million euros in the scandal.

European media have said HSBC of Britain and Union Bancaire Privee of Switzerland could also have suffered losses, although both have remained tight-lipped so far about potential exposure.

Madoff was arrested on Thursday for allegedly defrauding his customers through a giant pyramid scheme. Prosecutors say that the 70-year-old, a Wall Street veteran, has confessed to losing at least 50 billion dollars.