TD Bank, others reach $1.35 bln settlements to end Stanford litigation (updated)

Independent Bank (Massachusetts)

27/02/2023 14:36

(Adds settlements with HSBC Bank and Independent Bank, earlier
settlements, statement from lawyer for court-appointed receiver
and Stanford investors)
       Feb 27 (Reuters) - Three banks have agreed to pay $1.35
billion to resolve litigation accusing them of contributing to
imprisoned Ponzi schemer Allen Stanford's fraud.
    Canada's Toronto-Dominion Bank will pay $1.205 billion, HSBC
Holdings Plc  HSBA.L  will pay $40 million and Independent Bank,
formerly known as Bank of Houston, will pay $100 million.
    The settlements avert a trial that had been scheduled to
begin on Monday in Houston federal court.
    Money will go to a court-appointed receiver who is repaying
victims of Stanford's $7.2 billion fraud, which was uncovered in
Feb. 2009, two months after the arrest of Bernard Madoff.
    Two other banks, Societe Generale  SOGN.PA  and Trustmark
Corp  TRMK.O  reached settlements of $157 million and $100
million earlier this year.
    The latest settlements boost the total payout by banks to
$1.6 billion.
    "Given all the challenges faced by the receivership since
2009, this is nothing short of a monumental recovery," said
Kevin Sadler, a Baker Botts partner who represents the receiver
Ralph Janvey and the Official Stanford Investors Committee.
    TD denied liability and said it acted properly at all times,
but settled to avoid the distraction and the uncertainty of
continuing to litigate.
    HSBC and Independent Bank did not immediately respond to
requests for comment.
    

 (Reporting by Jonathan Stempel in New York and Niket Nishant in
Bengaluru; editing by Arun Koyyur and Jason Neely)
 ((Niket.Nishant@thomsonreuters.com;))