According to the Hartford Business Journal, the Massachusetts Mutual Life Insurance Company (MassMutual) is one of the firms most hurt by the Bernie Madoff investment scam. Its Tremont Group Holdings subsidiary invested about $3.3 billion with Madoff, which is most likely lost.
Ruthie Ackerman at Forbes says that the Rye Investment Management division of Tremont invested virtually all of its clients’ money into Madoff’s Ponzi scheme. Rye was responsible for half of Tremont’s investments. Unfortunately, many investors may have lost their retirement savings as a result.
Despite Tremont being worth $250 million on MassMutual’s books, their representatives are attempting to reassure customers that their accounts have “very little exposure” to the Madoff fraud, and that their financial position will not be greatly affected. That, however, is based only on the parent company’s relatively minor ($10 million) investments with Madoff and not from investors with the Rye unit.