Posted on 12/15/2008 4:35:43 PM PST by Sub-Driver
Madoff Investors May Be Protected By Government
Reporting John Slattery NEW YORK (CBS) ― Federal investigators remain at the investment offices of disgraced investor Bernard Madoff, scouring through records to learn the scope of what may be the biggest Ponzi scheme ever in the United States.
The numbers are staggering, the losses far-reaching.
The scheme was operated out of the so-called "Lipstick Building" on Third Avenue. Bernard Madoff Investment Securities LLC occupies three floors and may have bilked investors of $50 billion.
Prosecutors say it was a classic Ponzi scheme. The firm paid-off earlier investors with money from new investors. It collapsed amid a nervous economy when some people wanted their money out.
"I believe he was a polished, polished, highly sophisticated schemester," said investors' attorney Mark Mulholland.
Mulholland's Long Island firm represents some 100 investors that could grow to several hundred who claim they lost millions.
"University endowments, pension funds; the scope seems to be limitless and affects little people too," says Mulholland.
In addition to publisher Mort Zuckerman; Fred Wilpon, owner of the Mets; former Philadelphia Eagles owner Norman Braman; there were the modest investors who put their faith in Madoff.
"We lost our life savings," said investor Joan Sinkin.
Brooklyn transplants to Florida, Sinkin and her husband Arnold said they lost 85-percent of a nearly $1 million investment.
"We were able to do things to enhance our retirement. Then in 72 hours, we were bankrupt," she said.
(Excerpt) Read more at wcbstv.com ...
Madoff Made Hefty Political Contributions to Top Officials (Clinton, Obama, Dodd, Schumer, Rangel)
Talk about paying for playing....
“The US government runs the biggest Ponzi sceme in the history of the world. It’s called Social Security”
This politically-correct welfare system can be easily solved:
Set it up as any other retirement program - eg, Husband retires, he has a choice of taking the full retirement or, if he wants his wife to continue receiving payments after his death, a partial payment. It’s that simple.
Oh, no - now one person’s account entitles the spouse to another check in the amount of half that of the account holder. Further, if the account holder has a bunch of ex-wives, they also get their own check. And, if you marry someone with underage kids, adopt some, or, heaven forbid, have your own, they also get checks based on your account. This was obviously set up by the bleeding-heart democraps who didn’t want old folks to get into the welfare line where they belong. (It should also be noted that well-off wives who have never worked a day in their lives and certainly don’t need the taxpayer handout, also get their unearned check.)
Clean it up and the whole system could survive. Instead, my personally responsible kids who have saved will not pass the means test.
Rules for investing in Hedge Funds were put in place so that if a wealthy person lost the entire investment, they wouldn't be financially ruined.
The gov't has no business bailing any one person out of this. That's implying the very rich are different than the people who have seen their 401k's diminish by more than half. It's all relative.
No one is bailing ME out...and I don't expect them to.
sw
For what it’s worth, I’m seeing a lot more interest in this story than it would ordinarily warrant, in my opinion. Big scam, ok, the shock of it, the numbers involved, it headlines a day or two, then gets replaced with another scam.
But not this one.
Wall Street Journal had it as the top headline yesterday.
Local news, ditto.
One of the top brokers in theis top ten US city was clearly distracted by this story during our routine strategy session half of yesterday too.
If I had to guess, I’d say there’s worry about just who the institutional and coprorate investors are, how much exposure they have, how close to the edge they might have been before this story broke, and what the ripple effects might be if they get into trouble over this.
Heads up, just in case.
In general, if SIPC applies, the investors have every right to it. Good brokers carry insurance over and above SIPC, and the losing investors would be entitled to that too, in my opinion. The fine prit will determine who is covered and who isn’t. SIPC is private insurance, not backed by the Feds.
No bailouts, however, let the chips fall where they may fall if SIPC and othere traditional investment insurance don’t apply.
My understanding is that $500,000 of their original investment is all that is protected minus withdrawals, of course.
“Brooklyn transplants to Florida, Sinkin and her husband Arnold said they lost 85-percent of a nearly $1 million investment.
‘We were able to do things to enhance our retirement. Then in 72 hours, we were bankrupt,’ she said.”
So all the rest of us who didn’t trust or risk all that we have to reap incredible rewards will now be bailing out some more greedo victims?
How did we ever get to the point where we as a nation reward bad behavior and penalize good behavior?
I tried to stop them but my mom and her partners insisted.
“If it sounds too good to be true....”
I remember relatives telling me about the magical energy company called Enron, who somehow made money just from wheeling and dealing.
Today, on talk radio, I hear a heavy push for some new company called, “Senior Planners Financial” or some such. They promise 7.5% per year, guaranteed, adn you can’t lose your money. It’s amazing that talk hosts are taking their money and reading their scripts. It’s so obviously bogus.
What is $500,000 in coverage when you lose millions and millions? Or billions in the Euros case.
WOW!
Chickenhawk Bob was a Madoff mini-me!
I’m so sorry your mother was swindled.
At least he’s not taking up space here, anymore.
Who got the $2,500 worth of unopened liquor? ;o)
with my mom it was “well, doctor so and so has done well or mrs “blank” who owns the lumber yard just loves Bob etc...
and then the big hammer: “your father left this account for me to have just as my own to play with and this is the only part of the family businesses you don’t control Mr Big Shot so leave me alone with this please, I’m not stupid you know, I birthed you 50 years ago need I remind you”
what are you gonna do when grandma pulls out the big guns?
man, was she ever humiliated.....I felt worse about that than losing the cash...she couldn’t even talk about it without boo-hooing...she was so upset and in her last year sick already....I really never had a choice but to let it ride...like watching a train wreck in slow motion
rumour has it had he not offed hisself someone woulda done it for him
he fleeced some less well off folks of all they had
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