[TigerLikesRooster]

"But the deal between Lehman and the Rye fund offers a glimpse into the way many funds of funds had come to operate in recent years. In order to justify an extra layer of fees, on top of the ones charged by the underlying hedge fund managers, funds of funds managers had to amp-up returns. And the only way to do that was by getting leverage from a bank."

[TigerLikesRooster]

Ping!

[ChetNavVet]

Simplistic time out.
Jail time for the old man as well as his sons. I’m just saying the investors maybe forgiven thier dubmness, but I think the Madoff sons need to go to jail. I admit I know nothing about high finance, or stock markets, or insider trading. I know enough people got defrauded of thier savings, that to let his two kids off the hook is stupid. And I don’t care, if they suffer not, for if that happens, I think less of rich people than I alreay do.

Dumba$$es all. And no sweat off of my back, unless there is a bailout, and I’ll take names for that.

[6SJ7]

The derivative contract enabled the Rye fund to leverage its investment in Madoff’s firm by a factor of 3 to 1—a move that enabled Tremont to generate higher returns and justify the fees it was charging investors.

Naturally, an investor should expect to pay more in fees to financial experts when they leverage a ponzi scheme. Sheese!

[raybbr]

Madoff, the former Nasdaq stock market chairman with more than four decades of trading experience...

One has to wonder how many accomplices he had in NASDAQ and in other places. One man did not do all this.

[BlackVeil]

But the deal between Lehman and the Rye fund offers a glimpse into the way many funds of funds had come to operate in recent years ...

It is a very scary picture.