Ethics and governance in the European Financial centers

Bloomberg has reported that Jean Guill, 58, who became director-general of the Commission de Surveillance du Secteur Financier May 1, isn’t “particularly worried” about Madoff damaging the country’s financial market.

He is coming so he cannot say anything else to avoid investor’s fears.

His predecessor gave a much more balanced interview a couple of weeks ago.

According to Deminor, the CSSF is very good at using its powers to help investors to get recoveries, but the big open question is whether they did enough before the fraud.

I totally agree to state that the CSSF is doing a good job compared to its counterpart in Ireland, as the Irish regulator:

- did not communicated a lot on Madoff

- does not seem to have decided measures in order to safeguard at best the investors' rights.

Nevertheless the legal and regulatory framework in Luxembourg remains in question.

The Independant has reported that the Irish arm of banking giant HSBC is facing another court action here arising from the bankruptcy of alleged $50bn fraudster Bernard Madoff and his companies.

Kalix Fund Ltd, registered in the British Virgin Islands, is suing HSBC Institutional Trust Services (Ireland) Ltd, Grand Canal Square, Dublin, for $35m given by Kalix for investment purposes to a sub-fund of Thema International Fund plc, and later allegedly passed on to Madoff companies by the HSBC company.

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