Bloomberg reports that alleged investment fraudster Bernard Madoff has now been placed under 24-hour house arrest, after growing fears that he could either be in danger from attack by angry investors, or that he could up sticks and leg it.
The news agency also quotes unnamed 'people familiar with the inquiry', who claim that investigators have now uncovered evidence of alleged wrongdoing that stretches back to the 1970s, and that option traders say that the strategy that Madoff claimed he used to produce his impressive 'returns' 'would have required at least 10 times the contracts that trade on US exchanges'.
Reuters also reports that, according to Swiss weekly newspaper NZZ am Sonntag, a Luxembourg-based fund run by UBS has some $1.4bn invested with Madoff.
And The Daily Telegraph reports that the 28 staff at London-based Madoff Securities International were laid-off last week. Traders are understood to have unwound positions Friday.
In the meantime, The New York Times reports that, according to Hedge Fund Research, 344 hedge funds closed their doors in the third-quarter - a new quarterly high (previous high - 267, Q4 2006).
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