The Madoff Crisis Hits Europe Hard

As some of Europe's largest banks reveal connections to Madoff's mess, billion-dollar writedowns could be in the offing

Europe's banking sector is ending 2008 just as it started the year—with the announcement of potential billion-dollar writedowns. Yet instead of exposure to subprime or securitized assets, this new round of prospective losses relates to European banks' links to the alleged $50 billion fraud of hedge fund manager Bernard Madoff.

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