Santander, Spain - Spain's Banco Santander is considering legal action against alleged Wall Street swindler Bernard Madoff, who caused losses worth 2.3 billion euros (3 billion dollars) to Santander clients, chairman Emilio Botin said Monday.

Santander was "analyzing all aspects related to this subject," Botin said on announcing that shareholders had approved a capital increase to finance the acquisition of nearly 76 per cent of Sovereign Bancorp.

Shareholders authorized the board of directors to increase the bank's equity by the issuance and distribution of shares equivalent to 2.2 per cent of the Santander Group's share capital, Santander said.

"We are talking about a broker who was authorized and supervised by the Securities and Exchange Commission" in the United States, Botin said in a reference to Madoff, stressing the rapidity with which Santander had informed its clients about the fraud. (dpa)