1/3/09 "I think this is going to be very interesting to see how this plays out." says John Carusone, president of the Bank Analysis Center

In 1999 Westport National Bank replaced another financial institution as the custodian for a number of individuals and entities that were investing with Bernard L. Madoff Securities

Westport bank says it has no inappropriate ties to Madoff

Norwalk Advocate

Westport National Bank on Friday sent a letter to its staff and customers stating it acted only as a custodian for clients investing in Bernard Madoff Investment Securities.

The bank sent the letter after the Wall Street Journal and The New York Times on Wednesday reported that investors in Florida had retained lawyers to investigate claims that the bank had steered their funds to Madoff.

"First, be assured that the Bank has not invested any of its own funds or the funds of its depositors with Madoff, and the Bank has not advised any customer or anybody else to invest with Madoff," Richard Cummings, president of Westport National Bank, said in the letter.

The bank is one of five divisions of Connecticut Community Bank, which formed in 2004 with the merger of Westport National Bank and Greenwich Bank & Trust, ...

....The law firms representing clients are Boca Raton, Fla.-based Stein, Stein & Pinsky and McCabe Rabin PA of West Palm Beach, Fla.

"We are getting new calls daily," Adam Rabin, a lead attorney investigating the Madoff fallout, said Wednesday in a statement, adding his firm heard investors were required to invest a minimum of $10 million.

"Today, we're receiving calls that investors had pooled from several hundred thousand to several million dollars together with other investors," he said.

Certain banks and security firms did not perform sufficient due diligence on Madoff before investing their clients' money with him, said Ryon MCabe, co-lead counsel with McCabe Rabin.

"Beyond suitability issues, this is the worst securities fraud we have seen in a long time," he said.
Individuals and nonprofit foundations across Palm Beach County, Fla., have been impacted by the Madoff scheme, McCabe said.

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