Investors lose billions in Madoff Hedge Fund Fraud (today, news, life)
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I wonder what will happen to this guy? I can't believe no one caught on, this had been going on for a loooooong time. How many more crooks like this are out there?
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The price of anything is the amount of life you exchange for it. ~Henry David Thoreau
I can't imagine thinking you have millions in the bank and waking up to find out you have NOTHING! Sheesh. Well, one thing I won't have to worry about!
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The price of anything is the amount of life you exchange for it. ~Henry David Thoreau
A very under-the-radar story here. The impact will be far wider than many folks, even "experts", anticipate.
There is a significant investment web of hedge funds that get investment money from other sources besides individual investors. The hedge fund run by Madoff is one of the larger funds getting money from other sources. Many folks may not realize this, but some of the more staid investors, such as state and teacher pension funds, placed some money in these "hedge funds of hedge funds" (a single investment vehicle investing in a pool of hedge funds) to get a little "boost" and "portfolio insurance":
The town of Fairfield, Connecticut, said it placed nearly 15 percent of its retiree pension fund with Madoff. Officials were scrambling to determine how much of the $42 million remained.
Big investors may lose in alleged $50B fraud - Dec. 14, 2008 (http://money.cnn.com/2008/12/14/news/bc.na.us.wallstreet.arr.ap/index.htm - broken link)
The ultimate impact of this fraud will be far wider than what is currently being reported, with a substantially greater number of "victims".
This story is going to be huge. The media, and public, doesn't fully understand it yet.
A very under-the-radar story here. The impact will be far wider than many folks, even "experts", anticipate.
There is a significant investment web of hedge funds that get investment money from other sources besides individual investors. The hedge fund run by Madoff is one of the larger funds getting money from other sources. Many folks may not realize this, but some of the more staid investors, such as state and teacher pension funds, placed some money in these "hedge funds of hedge funds" (a single investment vehicle investing in a pool of hedge funds) to get a little "boost" and "portfolio insurance":
The town of Fairfield, Connecticut, said it placed nearly 15 percent of its retiree pension fund with Madoff. Officials were scrambling to determine how much of the $42 million remained.
Big investors may lose in alleged $50B fraud - Dec. 14, 2008 (http://money.cnn.com/2008/12/14/news/bc.na.us.wallstreet.arr.ap/index.htm - broken link)
The ultimate impact of this fraud will be far wider than what is currently being reported, with a substantially greater number of "victims".
This story is going to be huge. The media, and public, doesn't fully understand it yet.
Yep. This story is huge. A lot of VERY rich people lost virtually everything except their homes and bank accounts. The fund was paying these people on average 1% per month with no downturns. I think most people that either invested with him or worked on Wall St. knew there was something fishy about these steady returns.
I'll be following this story...it really is fascinating. I'm impressed his son's turned him in right away; before he blew another 200 million on "family and loyal employees". What a creep. I don't care how many character witnesses they drag out at the trial to say what a charmer he is...if he was running a Ponzi scheme, he knew that people would be totally screwed eventually.
He'll be going away for the rest of his life to some white collar fed prison. Boo hoo.
"I don't care how many character witnesses they drag out at the trial to say what a charmer he is...if he was running a Ponzi scheme, he knew that people would be totally screwed eventually."
I doubt that there will be many character witnesses. While known for his great philanthropic work, those charities that he work with lost millions as well.
A very under-the-radar story here. The impact will be far wider than many folks, even "experts", anticipate.
There is a significant investment web of hedge funds that get investment money from other sources besides individual investors. The hedge fund run by Madoff is one of the larger funds getting money from other sources. Many folks may not realize this, but some of the more staid investors, such as state and teacher pension funds, placed some money in these "hedge funds of hedge funds" (a single investment vehicle investing in a pool of hedge funds) to get a little "boost" and "portfolio insurance":
The town of Fairfield, Connecticut, said it placed nearly 15 percent of its retiree pension fund with Madoff. Officials were scrambling to determine how much of the $42 million remained.
Big investors may lose in alleged $50B fraud - Dec. 14, 2008 (http://money.cnn.com/2008/12/14/news/bc.na.us.wallstreet.arr.ap/index.htm - broken link)
The ultimate impact of this fraud will be far wider than what is currently being reported, with a substantially greater number of "victims".
This story is going to be huge. The media, and public, doesn't fully understand it yet.
admittedly, I'm just getting my mind around this one but I have to ask in reference to the bolded portion. Do you feel the fall out is due to perception problems or due to actual loss of funds. As I realize that the way things are right now, consumer and investor confidence is extremely important and hard to get a finger on kind of thing.
Madoff guilty of impersonating a social security commissioner without a license?
A list so so far of Madoff's victims. Bernie Madoff's Victims: The List
Per what I saw on CNBC the other day, there were occasional investors who looked at Madoff's operation with the idea of taking a stake in it, but thought it was fishy. Some of these folks TOLD the SEC but the SEC did NOTHING.
Saw a clip of Madoff on TV today, in a prior talk to a group Madoff said words to the effect that the SEC rules were so loose that they were not enforceable and you could go whatever you wanted. Looks like HE did whatever he wanted.
Warren Buffett has never invested in hedge funds, he says he doesn't understand them, and refers to hedge funds as weapons of mass destruction. No kidding.
Wait until we hear from the European investors. I wonder if we get to bailout this creep too, or is this hit going on AIG's plate...
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