Market Movers Toronto-Dominion Bank was flat after it said on Monday it would pay US$1.205-billion to settle a lawsuit in connection with a multi-year Ponzi scheme operated by the Stanford Financial Group.
HSBC Holdings Plc will pay US$40-million and Independent Bank, formerly known as Bank of Houston, will pay US$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 US$7.2-billion fraud, which was uncovered in Feb. 2009, two months after the arrest of Bernard Madoff.
Two other banks, Societe Generale and Trustmark Corp reached settlements of US$157-million and US$10- million earlier this year.
The latest settlements boost the total payout by banks to US$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.