MADOFF VICTIMS' RE$CUE? (pressure on Treasury to boost SIPC fund)

NY Post ^ | 01/04/09 | JAMES DORAN

[TigerLikesRooster]

MADOFF VICTIMS' RE$CUE?

By JAMES DORAN

January 4, 2009 -- Angry victims of Bernie Madoff's alleged $50 billion Ponzi scheme want a bailout from Uncle Sam, too.

On the heels of Washington's $700 billion rescue of the nation's ailing banks and the $17.4 billion rescue of the auto industry, the Madoff victims are now calling on the US Treasury to augment the $1.6 billion in the coffers of the Securities Investor Protection Corporation - the organization set up to help victims of collapsed brokerages.

SIPC has pledged just $500,000 to each Madoff victim who had an open account with the fraudster's firm in the past 12 months - but that may not even come close to covering the Madoff losses, which are thus far estimated to be somewhere between $30 billion and $50 billion.

"What if it turns out that SIPC needs $15 billion to compensate all the victims because this fraud is bigger than anything they imagined could happen?" said Michael Sirota, a lawyer representing KML Investments, a firm that claims to have lost some $80 million to Madoff. "I think the US government should step up with funds to help like it has for the banking sector and the automotive sector."

"We desperately need to see the pool of assets we are working with and also the pool of losses," added Stuart Rich, a lawyer representing a group known as Jasper Investors that lost some $3 million to Madoff's scam, who also said Washington needs to step up to the plate with bailout money.

"SIPC has always been there to compensate victims in this kind of

[khnyny]

What about Enron? That fiasco ruined lots of people’s lives and they didn’t get their money back. People lost their entire pensions, etc.

My guess is, this is being discussed as it is the very wealthy and influential who got scammed by this creep Madoff. If it was the little guy, it would be tough luck sucker.

[nkycincinnatikid]

Imagine a Mafia controlled state which allowed its consiglieris to keep their gaming winnings, and used the public treasury to continously re-stake the so-called victims.
America the land of opportunity.

[JudgemAll]

I see... so the social life between Madoff and his “victims” must be bailed out.

It reminds me of certain “rape victims” who later on befriend the rapist.

Whores and pimps redefined, there, and the maintaining of evil “relationships”.

Ironic both Madoff and his “victims” spoke out during “bailout” time, uh? Just when the legal system was there backing the “victim”.

[Gritty]

remember that on Nov 4, congressional incumbents were overwhelmingly re-elected, *after* passing the $700bn ‘bailout’ over the objections of some 70% of the Great Unwashed....

That bears repeating. We are getting the government we richly deserve.

These thieves should have been tarred, feathered, and run out of Washington on a rail long ago. Instead, we give them pay raises, more of our money to spend, and overwhelmingly re-elect them to their cushy jobs year after year.

Frankly, our biggest civic mistakes were giving the vote to people who either don't own property or pay taxes and allowing rampant fraud in the voting system.

[Jimmy Valentine]

What really sucks is that a lot of them knew that the returns were all B.S. What they thought is that Madoff was trading on insider information (wink, wink, nudge, nudge). It was all o.k. 'cause Bernie was "heymesh' and would never screw over the Tribe.

And these solid citizens want a bailout? Pffffftt!!

[JudgemAll]

Paging Obamessiah... oh, wait, he is part of Congress... It’s just a show.

[Tunehead54]

Madoff Ponzi List Bump! Thanks. ;-)

[JudgemAll]

Good civics would hurt our social life, localy, though. Even Bush wants to run for this Congress of thieves these days.

[Cheapskate]

ENOUGH!!!

NO MORE STINKIN BAILOUTS!

Why must the taxpayers pick up the check every time some congress critter,thief or paper pusher slip some cabbage in their pockets????

[pointsal]

Seems like these Madoff investors were plowing donations into political causes that I object to... let the buggers start over!

[Just mythoughts]

Liberals are going to need their election donors, why not use taxpayers money to fund them. They have been after socialized campaign financing for years. I just can't wait to hear lord McCain keep his election promise to name names....NOT

See liberals always require everybody to pay so a few of them can play.

Was there a particular incident that dried up Madeoff sources of money flow? Oil prices? I personally think the keeper of the economy knew about this scam when he threatened Congress to give him the keys to Ft. Knox.

[ladyjane]

Astude businessmen didn’t just hand their money off to Madoff for 15% return. Billions of these dollars were siphoned off to off-shore accounts.

Tax evasion now gets rewarded. At least for the rich and powerful.

[dennisw]

Were you on the list?

[nkycincinnatikid]

I see Carl and Ruth Shapiro on the “victims “ list. Weren’t they the ones who sold the collapsed Wachovia Bank their worthless mortage potfolio?

[Hillarys nightmare]

My 85 year old father in law, lost 25 grand when Leman Brothers bank filled Bankruptcy. We were told by Edward Jones ( the investment group managing his funds) that it may take a few years, but they hope he would get some of his money back.

Yeah,........I 'll just bet that happens. HIS money is gone with the wind, and we know it.

If anyone deserves their money back from anyone, it's the legitimate investors who have invested in legitimate companies through legitimate brokerages.

But because he is a virtual nobody for any Democrat or Republican politician to be concerned with, he's never going to be bailed out.

We are just hoping that the rest of his money is going to be safe, as his entire portfolio is now worth about half of what it was only 7 months ago. As far as the politicians are concerned, they'll take care of their own friends and big contributors; you can bet on that!

[dennisw]

Is Carl Shapiro a Madoff Victim? - Finance Blog - Felix Salmon ...Carl Shapiro, a 95-year-old apparel entrepreneur and investor, had $545 million with Mr. ....

[org.whodat]

"I think the US government should step up with funds to help like it has for the banking sector and the automotive sector."

Ok, everyone that has ever lost one penny are thought they lost so much as one penny due to the government action are in action get in line. Now paying ten to one.

LOL

That dumb-ass Jorge bush and Paulson have started one of the biggest piles of shi@ this country has ever seen.

[cpdiii]

Seems like these Madoff investors were plowing donations into political causes that I object to... let the buggers start over!

If you look at the individuals that lost money you will see a great number of them are the political left that donates great sums of money to the demonic-rat party. They may get the bailout. Perhaps the government would like to cover my losses on Enron a few years ago? I am not holding my breath.

[KeyLargo]

ACLU LOL!

Madoff's Ponzi Scheme Victimizes ACLU, Others | Written by John F. McManus Friday, 02 January 2009 20:43

MadoffIn a December 23 communication sent to the American Civil Liberties Union's benefactors, administration and finance director Alma Montclair reported that the organization will not receive the sum of $850,000 from two foundations whose contributions were counted on to continue the group's work. The unnamed donors, she stated, have been "forced to close their doors and terminate their grants" because they "have been victimized by the Madoff scandal."

Claiming that the ACLU is the nation's leader in the "critical" areas of "national security and reproductive freedom," Monclair, a 23-year veteran ACLU employee, asked for end-of-the-year donations from the group's long-standing supporters to cover the lost contributions.

Also, the Elie Wiesel Foundation for Humanity lost more than $15 million. Formed to combat anti-Semitism, its leaders reported on December 24 that because of having invested with Madoff, "substantially all of the Foundation's assets" had disappeared. Its release nevertheless insisted that it "remains committed to carrying on the lifelong work of our founder." Wiesel, who is now 80 years old and who launched the group 20 years ago, has also been personally victimized by Madoff's investment fraud.

Other Madoff victims include Yeshiva University, whose chief financial officer expects its losses will total $14.5 million. The Robert I. Lappin Foundation, a financier of trips to Israel for Jewish youngsters, will have to raise needed funds from elsewhere to make up for its losses. Duped investors include actors Kevin Bacon and Kyra Sedgwick.

Madoff's fraud reached overseas as well. In Austria, the Bank Medici expects that its clients who invested with Madoff will lose more than $2 billion. The bank's primary owner, Vienna resident Sonja Kohn, founded it in 1994 after having lived in New York City for several years. In Connecticut, the Westport National Bank has been drawn into the scandal because it acted as a custodian for funds invested with Madoff.

Madoff worked his scheme mainly on Jewish groups and individuals in Florida and New York. They now find themselves a great deal less wealthy if not completely wiped out. The Madoff operation, run mainly through his Bernard L. Madoff Investment Securities firm, is expected to cost once-eager clients approximately $50 billion in lost assets. http://www.thenewamerican.com/economy/markets-mainmenu-45/640

[org.whodat]

Perhaps the government would like to cover my losses on Enron a few years ago?

They may have if you had not forgot to send that thank you note to Phil Gram!!!!