UPDATE 1-HSBC says Madoff trustee’s claims unfounded

* HSBC will “vigorously defend itself” against Madoff claims

* Swiss firm Genevalor also rejects claims against it

(Adds detail)

LONDON, Dec 6 (BestGrowthStock) – HSBC Holdings (HSBA.L: ) said claims
the bank had aided the fraud scheme of convicted swindler
Bernard Madoff were unfounded and it would “defend itself
vigorously” against all Madoff-related claims.

U.S. court-appointed trustee Irving Picard sued HSBC for $9
billion on Sunday, accusing it of aiding the Madoff fraud
“through the creation, marketing and support of an international
network of a dozen feeder funds”. [ID:nN05176110]

An HSBC spokesman said the bank was defending itself against
Madoff-related claims brought against it in various
jurisdictions, including U.S. class action cases.

“HSBC believes that the U.S. court appointed trustee’s
claims of wrongdoing are unfounded and it will defend itself
vigorously against those claims as well,” the spokesman said.

The so-called feeder funds named in the lawsuit in U.S.
Bankruptcy Court in New York included Swiss firm Genevalor,
Benbassat & Cie which said it strongly denied any wrongdoing and
rejected the claims.

“In particular, it strongly denies any allegation that it
had prior knowledge of the fraud committed by Madoff,” Genevalor
said, adding “this unfounded action causes a significant harm to
the investors and to itself”.
(Reporting by Steve Slater; Editing by Dan Lalor)

UPDATE 1-HSBC says Madoff trustee’s claims unfounded