Madoff scam dates back to 70s. Why am I not surprised? Plus, he recently told the SEC he had no more than 25 clients when he actually had 4,000. The incompetence and studied ignorance of the SEC is appalling. Sue, who is a CPA and a forensic auditor, thinks lots of people will be going to prison besides Madoff. I’m guessing some will be people who worked in regulatory agencies.
Madoff feeder fund circling the drain. The Fairfield Greenwich Group raised $7.5 billion for Madoff to “invest” claiming all the while that their due diligence was superior.
Now that FGG’s clients have realized just how effective FGG’s vaunted due diligence processes are, we imagine they will rapidly be pulling the rip cords. Especially now that FGG’s principals will be spending thousands of hours preparing for litigation instead of rubberstamping investment managers.
FFG was also charging their clients steep fees for managing their money when in fact the much of managing was done by Madoff. Thus FFG was making large bucks for doing not much at all, and doing that incompetently.
Krugman. We’re all Ponzi now. When a Nobel Laureate in Economics says that, I pay attention.
Now, as we survey the wreckage and try to understand how things can have gone so wrong, so fast, the answer is actually quite simple: What we’re looking at now are the consequences of a world gone Madoff.