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Madoff Scandal - $50 billion fraud

  1. Dec 13, 2008 #1

    Astronuc

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    List of potential victims grows in NY fraud case
    http://news.yahoo.com/s/ap/20081213/ap_on_bi_ge/wall_street_arrest

    This is just stunningly unbelieveable!

    The key in investing is 'due diligence'.
     
  2. jcsd
  3. Dec 13, 2008 #2

    mgb_phys

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    So the exact opposite of the rest of Wall St's troubles
     
  4. Dec 14, 2008 #3

    Ben Niehoff

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    Looks like he Madoff with everyone's money!
     
  5. Dec 14, 2008 #4

    Danger

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    Where the hell is that 'groan' smilie that Moonbear has been requesting for years?
    Greg, in a memorial for her leaving us, you should add one.

    Ben, that was so bad (good) that it should be bronzed and mounted in the pun hall of fame. :biggrin:
     
  6. Dec 15, 2008 #5

    chemisttree

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    50 Billion is bigger than the Enron scandal.
     
  7. Dec 15, 2008 #6

    mgb_phys

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    Even funnier it wasn't just rich idiots - it was a lot of major banks that 'invested' with this guy.
    They are all blaming the US goverment regulators and say they should be bailed out.
    I wish I had sent some money to all those Nigerian investment schemes in my email - then the goverment might have bailed me out as well.

    Santander, Spain - $3.1bn
    HSBC, UK - $1bn
    Natixis, France - $605m
    Royal Bank of Scotland, UK - $601m
    BNP Paribas, France - $460m
    BBVA, Spain - $400m
    Man Group, UK - $360m
    Reichmuth & Co, Switzerland - $325m
    Nomura, Japan - $303m
     
  8. Dec 15, 2008 #7
    but he seemed like such a mensch!
     
  9. Dec 15, 2008 #8

    mgb_phys

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    I can see some rich idiots being tricked into a scheme.
    Apparently they were approached by friends of a friend and it was a secret deal that but if you got in you made lots of money, but don't show the details to your lawyer/accountant because it's a bit dodgy.
    But how the <beep> does HSBC fall for this?
    Don't they watch the Sting as part of an MBA anymore?

    On the other hand - maybe HSBC will let me pay off my credit card bill with magic beans!
     
  10. Dec 15, 2008 #9

    BobG

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    Interesting analogy. How to rob a bank. Banks seem to have a soft spot when it comes to falling for Nigerian con artists, although for much smaller amounts than Madoff - their scams only cost millions instead of billions.

    Hmmm, a secured credit card where the customer sends in $99, about 65% in interest and other finance charges. Looks like the bank has lured in a real sucker. Until the credit limit goes up to $3000 and all the checks bounce. Turns out the scammer is enjoying a 3000% return on his investment instead of the bank making a killing.

    Why do people think banks are smarter than average people when average people work at a bank?
     
  11. Dec 15, 2008 #10
    Because they wear suits and ties! How could someone who looks so professional be dumber than someone who wears jeans and a t-shirt???
     
  12. Dec 15, 2008 #11
    banks have really gone downhill since abandoning the granite exterior for stucco facades.
     
  13. Dec 15, 2008 #12
    That's just precious. :rofl:
     
  14. Dec 17, 2008 #13

    Astronuc

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    An interesting perspective on the Madoff scandal -

    Madoff scam is part of "the bezzle"
    http://marketplace.publicradio.org/display/web/2008/12/16/pm_big_bezzle/
    Country club circuit key to Madoff's rise
    http://marketplace.publicradio.org/display/web/2008/12/16/pm_madoff_culture/


    Schmoozing and bezzling


    Apparently there may be more Madoff-type scandals, and perhaps some of larger magntitude.
     
  15. Dec 18, 2008 #14
    Probably there is only a single real dollar bill in circulation and the rest is an illusion. We only thought we had money.
     
  16. Dec 18, 2008 #15

    mgb_phys

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    Isn't there a story about that?
    Somebody goes to the bank wanting to withdraw all his money in cash, they count out the piles of however many $1000 and ask him if he would like a bag, no says the customer you can put it all back - I just wanted to make sure it was all still there.
     
  17. Dec 18, 2008 #16
    I remember a story by Al Capp in the comic strip Li'l Abner in which a character named General Bullmoose aquired all the money in the world except for $1. I forget how it turned out.
     
  18. Dec 18, 2008 #17

    mathwonk

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    2015 Award

    I was reminded recently of Will Rogers' prescient characterizations of the two parties:

    We all know his: "I don't belong to any organized political party, I'm a Democrat",

    but I had forgotten his version of a Republican president's motto: "Boys, my back is turned".

    The outcomes from recent non regulatory behavior by our government make it sound fresh.
     
  19. Dec 18, 2008 #18
    Apparently someone went to the SCC about Madoff in '99 with credible evidence of his illegal activities and was blown off.
     
  20. Dec 18, 2008 #19

    Astronuc

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    Apparently the warnings went far back as 1992.

    A lot of people are asking - what happened?

    I read a headline tonight, which indicated that the Madoff scandal may cost Uncle Sam $17 billion. I don't know what that is - perhaps loss of tax revenue from capital gains? Or some coverage for losses? I don't think any of this was covered by FDIC, but then I don't know any specifics.
     
  21. Dec 18, 2008 #20

    jal

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    The scammers got scammed by one of their own. (It's too bad about the innocents).
    Now they want blood and they will get the "Socialists" to draw up "enforceable regulations" to protect themselves.
    It's too bad about the innocents, they are needed for the next scam to work.

    Capitalism is about the survival of the fittest.

    By the time they get around to convicting him he will be dead of old age.
    He out-foxed them all.
    He will be rolling with laughter, in his grave, and his family will be rolling in cash.
    jal
     
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