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Friday, December 12, 2008

$50B Ponzi scheme

Pushing Blago farther down the front page today is this:

"Bernard L. Madoff, a former chairman of the Nasdaq Stock Market and a
force in Wall Street trading for nearly 50 years, was arrested by
federal agents Thursday, a day after his sons turned him in for
running what they said their father called "a giant Ponzi scheme."

"The Securities and Exchange Commission, in a civil complaint, said it
was an ongoing $50 billion swindle..."

http://online.wsj.com/article/SB122903010173099377.html [$]

An interesting point is that his sons turned him in. His sons are
"the firm's senior managing director and chief compliance officer" and
its "director of trading". Supposedly they didn't know because this
part of the business was on a different floor and "Mr. Madoff kept the
financial statements from the firm under lock and key and was
'cryptic' about the firm's investment business." That's a bit thin.

One possibility is that the 70 year old father is going to take the
fall for the family.

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