Lloyd’s has Stanford covered

Lloyd's of London provides insurance to the financial empire of Allen Stanford, but not to cover any client funds in the possible fraud the Texas billionaire has been charged with, Reuters reports.

"We are aware that Stanford International Bank has insurance arrangements with the Lloyd's market," Lloyd’s told Reuters. "Stanford International Bank's policies at Lloyd's do not extend to investors' funds," it also said.

Officials at Stanford's bank said deposits were insured through an agreement with Lloyd's of London.

If the fraud claims were found true, any insurance coverage Stanford had could be invalidated, Lloyd's said.