Wow, I bet those regulators were doing a heck of a job of regulating.
Yet of the same regulators, rather than being fired or disciplined, were sent back even after it was apparent Madoff was a crook. At the very least, the SEC should have sent those with actual competence and no compromised ethics.
The SEC is pathetic. Then and now.
Fine, young regulators are inexperienced and impressionable. But was whistleblower Harry Markopolos really that hard to understand when he said in 2005 that Madoff was “running the world’s largest Ponzi Scheme”? Come on.
If anything, this emphasizes what’s so bad about the private sector / regulator revolving door. It’s not obvious how you get anyone to crack heads when they’re angling for jobs after doing their stints in Washington.
Some suspect that others at the firm or other Madoff family members could be implicated by DiPascali. But far more explosive would be evidence pointing to the complicity of outside investment managers, such as Ezra Merkin and Walter Noel. It seems likely that the feds are cutting a plea deal with DiPascali to go after a big fish rather than minor accomplices
[Madoff’s London office] “was where the Madoffs washed their investors’ money and then spent it on expensive furnishings, yachts, automobiles, and other luxuries.”
Bear Stearns had an unwritten rule. All of their NASDAQ trades were routed through Madoff’s trading operation. By definition, this is not a fair or open market nor, I suspect, did most of those trading through Bear know of the arrangement.
For several reasons, JPMorgan Chase probably knew by Sept 2008 that Madoff was a fraud. They liquidated their investments with him yet kept accepting money from his clients.
Yet again we see that the supposed free and open US markets are in reality something quite different. Collusion, lack of transparency, flexible rules for the elites, and open criminality seem to be the norm.
“Barron’s Phil Roosevelt speaks with Erin Arvedlund, author of the new book on Bernie Madoff, “Too Good top Be True,” which reveals new details about the Madoff scandal.”
Apparently the MSU method of accounting isn’t always the best of ideas after all
Madoff’s accountant, David Friehling, will probably plead guilty to various charges of Making Sh*t Up due to his fantasy audits of Madoff’s businesses. Prosecutors aren’t saying that he knew about the Ponzi scheme, but rather that he did virtually nothing but “rubber-stamp statements he didn’t verify.” He got paid, as I recall, $150,00 a year, which is comparative chump change.
Madoff played him like a violin, didn’t he? Chump. But now it seems he’ll be singing like a birdie.