The New York Times had an interesting article today explaining how the loss of billions of dollars in the Madoff scandal is affecting real estate developers.
Apparently many of them used millions of dollars worth of their own investments with Madoff as collateral for bank loans on enormous projects such as shopping complexes. They’re now afraid that the lenders will ask for new collateral from other sources because their investments have disappeared. One lawyer is representing ten developers who lost between $5 and $50 million each. Ouch.
Here’s a link to the New York Times article.
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