Posted on 02/20/2009 10:27:09 AM PST by Ernest_at_the_Beach
NEW YORK (MarketWatch) -- The trustee liquidating Bernard Madoff's investment firm says his investigation has found no evidence that any securities were purchased on behalf of customers in at least 13 years.
Speaking at a meeting Friday morning of Madoff's customers, the trustee, Irving Picard, said the firm's customers can recover up to the $500,000 they're entitled to under the Securities Investor Protection Act. Customers who've lost more than that amount can also share in assets recovered by the trustee.
(Excerpt) Read more at marketwatch.com ...
Was Madoff’s hedge fund paying for the Investor Insurance?
If not..why would his investors qualify?
“Was Madoff’s hedge fund paying for the Investor Insurance?
If not..why would his investors qualify?”
GOOD question. Is this like FDIC insurance for banks..in other words....tax $$$$??? Something that was set up to protect big investors?
“said the firm’s customers can recover up to the $500,000 they’re entitled to under the Securities Investor Protection Act. “
Mark my words, folks . . . the details of this story reach way up into the upper echelon of the U.S. government, which is why most of these details will never see the light of day.
There are small fees that are charged on the exchanges for every trade that go to various things, from SEC, enforcement, regulation, and this type of program.
This guy must have been some kind of genius? How could he make this last that long without buying any securitiesn in 13n years?!
Irving Picard’s credentials and photo are available at
I guess it takes some “smarts” to be able to pull something like this off, for “13 years”... LOL... what a deal!
It makes one wonder how much of the *entire financial system* is actually “smoke and mirrors” (like this) and is not really there, at all. I think we’re gonna get a lot of this type of “fallout” as many kinds of financial instruments and/or companies are going to be “forced clean” by the economy, or go bust.
And it’s all that is going on like that, which is causing the Great Depression, which will deepen considerably more, all during 2009...
The only problem is that they were accomplices to something other than what Madoff was doing with their money (in other words, they thought he was perpetrating a different kind of scam in which they themselves were supposed to be the beneficiaries).
It only became a "crisis" when the co-conspirators/victims found out that the scam wasn't what they thought it was.
That was all known. For him to make this last 13+ years without buying any securities is unbelievable.
I did a quick calculation...2,350 claims so far at $500,000 each would mount up to...1.175 Billion $....that would be an upper bound ...if there are no more claims.
He was not a genius. He was well-connected and had built up a reputation that was false.
He is no different than the old snake-oil salesman of years gone by.
Stanford the next financial fraud is the same. Telling people what they want to hear even though there is no way he could deliver what he was selling.
I wonder if buying Corporate Notes or Treasury Notes count?
fyi
It seems it was posted a short time ago that the fund was nearly broke. There was probably a bail out somewhere in those 1000 pages of stimulus pork and no one has found it yet.
Okay, yes. But how can one create a scheme like this for so much money and for so long. It’ almost impossible to believe.
Well, those are securities.
How many more mega-Madoffs and super-Stanfords are just waiting to blow up?
Folks, do you really “own” the securities you think you own?
I endorse a “Jubilee Year” in whcich all debts are forgien and we reset the economy.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.