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One More Headache For UBS

The Bernie blame game has taken on an interesting twist courtesy of the French. Even though the Ponz duped every investor and regulator not named Harry Markopolos, the French market regulator has pointed the finger at UBS for their role as custodian for a fund specifically designed to invest with Madoff. For those who were surprised that a fund which was set up to invest nearly 100% of its assets with a single manager presented some potential risks, this could be your chance to have somebody else pay for your mistakes.
Far be it from any regulatory body to pay up for their own ineptitude, the French regulator places the blame squarely on the shoulders of the crime fighting gang in the custody unit. Should that fail, regulators can always recommend going after Bic for their glaring lack of risk management in providing the ink that enabled people to sign their names on Madoff-related documents.
UBS Should Repay Madoff Investor Losses, Agency Says [Bloomberg]