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It was called the "hedge fund" floor, but federal prosecutors now say the work Mr. Madoff did there was actually a fraud scheme whose losses Mr. Madoff himself estimates at $50 billion.
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New funding floor at 115%; Welsh block grant to reach almost £15bn by 2019-20.
On Friday, the UK government proposed a funding "floor" - guaranteeing a minimum Welsh government income.
The party says: "The next Labour government will introduce a Barnett funding floor and deliver fair funding for Wales.
He told BBC Wales the UK government's promise of a funding floor could be worth £2bn to Wales over 10 years.
A Welsh Conservatives spokesperson said: "The funding floor for Wales is not contingent on an income tax referendum.
It comes as arguments continue over the coalition government's pledge to set a minimum funding floor.
A trickier third question: what is "fair funding?" Labour's UK manifesto, published today, promises "a fair funding settlement for Wales, with the guarantee of a funding floor".
But Mrs Hutt said the coalition could have gone further by offering more detail on the terms of the funding floor, "but they didn't.
"That is why I have asked civil servants in the Treasury to start straight away working on how a funding floor will operate".
He told the Jason Mohammad programme: "Under Labour, in addition to setting this funding floor, because of the changes that we're introducing to the taxes system - we're going to be giving an extra £375m a year to Wales.
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