Posted on 01/04/2009 3:10:18 AM PST by 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
(Excerpt) Read more at nypost.com ...
“SPIC”?
**snicker**
I believe the tally of CURRENT losses is $50 billion, likely more by the time the final accounting is done. Lots of the firms/individuals had been with Madoff for years and years. If your scenario is correct, the paying out of an average 10% return over twenty years, culminating in a $50 Billion loss, means that he has gone through over one $Trillion in his years running this scam. The paid off investors were receiving regular distributions for years, so the total $$$ run through the scam is a magnitude larger than $50 Billion. I’m guessing One $Trillion above, but that’s probably low, under your scenario.
And he did all that with just he and his wife cooking the books?
Nahh, something stinks to high heaven here.
Sarcasm off.
So families such as ours, just scraping by, with little money left after after paying 50% of our income in various taxes, are giving stupid rich investors $500K each from the federal till, and it’s not enough? Beam me up, Scotty.
where the HELL does the bailout END?
Why can’t they get some of their money from Madoff?
HE still has his own wealth, doesn’t he?
Why can’t he be forced to pay restitution?
What about everyone who lost a dime in a casino? They need a bailout also.
No you’re talking!!!!
Save me from myself...
This is infuriating.Madoff’s Ponzi scheme was an UNREGISTERED fund. The clowns that put money with him are not entitled to SIPIC insurance.
formating is king...dang, my head hurts.
2% return per month and no questions of how it was done? How you can beat historic returns of the S & P and all indexes and Bonds without any thought of risk?
My guess is none of these folks ever took a basic courses in personal investing, economics. business, and accounting.
It is a miracle they are as successful in life as they are because based on this decision alone their ignorance and stupidity is staggering.
And this is the liberal intelligentsia that tells us are politics and beliefs are all wrong and to vote for the Obamster....
Beam me up Scotty......
” If we allow that one, we are doomed. “
Then we are doomed — 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....
The tail wags the dog, and we no longer have any, repeat, any control over the ‘government of the people, by the people, for the people’......
What about us victims of Social Security? It is no better a Ponzi scheme.
Few winners in 20+ years
Congress To Bailout Lottery Losers
Estimates Americans spent 2.3 trillion on lottery tickets.
If I were on that list it should be treated the same as the money I lost and did not recover from the government in the Enron fiasco. No bailout, no SPIC funds, nothing to these morons. It was one big social network and they got caught. Lastly, for those who got some money back in the form of distributions, why should they be bailed out for their original investment? I got it, the government will be the last investor in this daisy chain Ponzi scheme.
Vince
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