Credicorp reportedly sued for US$120mn Madoff investment

Monday, September 26, 2011

The liquidators of convicted fraudster Bernard Madoff's assets have sued the private banking branch of Peru's principal financial conglomerate, Credicorp (NYSE: BAP), for US$120mn, according to a September 23 Bloomberg report.

The lawsuit is allegedly related to investments made by Credicorp's wholly owned Atlantic Security Bank with Madoff's feeder fund Fairfield Sentry.

Credicorp officials said they had not received any information about the lawsuit when contacted by equity analysts from Deutsche Bank (NYSE: DB) on the day of the Bloomberg report.

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Deutsche analysts added in a note to clients that the impact of any such lawsuit on Credicorp's financial situation should be contained.

Atlantic represented 8.5% of Credicorp''s net income in 2010.

"Furthermore, we think any lawsuit is likely to drag on for years or potentially be settled for a smaller amount," the Deutsche Bank analysts added.