Santander’s Offer to Victims Come With Strings
January 30th, 2009 meg
Banco Santander’s €1.38 billion offer to compensate victims of the Madoff scandal with preferred stocks comes with some serious strings attached.
Any victims who accept the bank’s deal must forego any legal action and keep Santander as their “preferred” bank as long as the shares stay in circulation, which may be indefinitely.
The stocks being offered only offer a 2 percent annual yield – much lower than the standard 8 or 9 percent.
The shares will have a call option after 10 years that the bank doesn’t have to exercise, and should a client sell the shares, he would have to invest the cash with Santander.
