teddy Posted December 12, 2008 Report Share Posted December 12, 2008 How the feck is this allowed to happen, I thought all funds were subjected to stringent auditing From CNBC: Bernard Madoff, a longtime fixture on Wall Street, was arrested and charged Thursday with allegedly running a $50 billion Ponzi scheme, U.S. authorities said. The former chairman of the Nasdaq Stock Market who remains a member of Nasdaq OMX Group's nominating committee, is best known as the founder of Bernard L. Madoff Investment Securities, the closely-held market-making firm he founded in 1960. But the alleged fraud involved a hedge fund he ran from a separate floor of the building where his brokerage is based. Madoff told senior employees of his firm on Wednesday that ''it's all just one big lie'' and that it was ''basically, a giant Ponzi scheme,'' with estimated investor losses of about $50 billion, according to a criminal complaint against him. A Ponzi scheme is a pyramid-type swindle in which very high returns are promised to early investors, who are paid off with money put up by later investors. Prosecutors charged Madoff, 70, with a single count of securities fraud. They said he faces up to 5 years in prison and a fine of up to $5 million. Link to comment Share on other sites More sharing options...
.. Posted December 12, 2008 Report Share Posted December 12, 2008 How the feck is this allowed to happen, I thought all funds were subjected to stringent auditing Not under Reaganomics mate. For the past 30 years, it was 'business will do what's best and they won't cheat so bin any and all rules.' Thacherism gone wild, if you will. Feckin' Greenspan said recently that "I am in a state of shocked disbelief that the markets did not self regulate." What an idiot. Newsflash: absent incentive (read that regulation) 99.99% of the people do what's best for them, not society. Sad indeed, but true. Nothing surprises me anymore from this mob. They WILL be the death of my country, and yet some morons still support them. Cheers, SD Link to comment Share on other sites More sharing options...
cavanami Posted December 12, 2008 Report Share Posted December 12, 2008 Now we are getting past the tip of the iceberg! Link to comment Share on other sites More sharing options...
teddy Posted December 12, 2008 Author Report Share Posted December 12, 2008 It was intersting how this was uncovered. A big pension fund was about to make a huge investment into this fund but decided to do a due diligence check because they found it amazing that this guy has regularly made returns of around 8% when other funds where struggling. They discovered that the auditing was carried out not by a firm but by one individual who worked out of his house. This sent a red flag up and he was gradually exposed. Apparently, nearly all 'funds of hedge funds' have a hunk of this fund so a hell of a lot of people are going to lose money. Link to comment Share on other sites More sharing options...
cavanami Posted December 12, 2008 Report Share Posted December 12, 2008 I have (or maybe had) two great upcoming sales being financed via hedge funds. Guess what, all the money evaporated! Farkin' hell, what a mess!!! Link to comment Share on other sites More sharing options...
Central Scrutinizer Posted December 12, 2008 Report Share Posted December 12, 2008 So he causes people to lose 50 fucking billion, that's 50 BILLION dollars, and he gets a 5 million dollar fine (chump change for him likely) and five lousy years in prison? Sounds right. I rob a bank of five hundred bucks and I'll go to jail for 20 years. Even if I did it to buy food for my kids because I got laid off, ran out of unemployment bennies, and can't find a job due to the crap these big business and wall street cunt crooks have done. White collar crime sure does pay doesn't it? Link to comment Share on other sites More sharing options...
cavanami Posted December 12, 2008 Report Share Posted December 12, 2008 ...but they been shamed and humiliated. Link to comment Share on other sites More sharing options...
.. Posted December 12, 2008 Report Share Posted December 12, 2008 White collar crime sure does pay doesn't it? It is what drives the Republican party and their supporters! Why do you think we are in this mess? Cheers, SD Link to comment Share on other sites More sharing options...
Faustian Posted December 12, 2008 Report Share Posted December 12, 2008 Indeed....they'll be more, there always is... Greed is good, right? Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted December 12, 2008 Report Share Posted December 12, 2008 White collar crime sure does pay doesn't it? It is what drives the Republican party and their supporters! Why do you think we are in this mess? Cheers' date=' SD[/quote'] madness. Link to comment Share on other sites More sharing options...
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