13 March 2009

Bernie Madoff Goes to the Clink

Bernie Madoff, Ponzi schemer and charity swindler, had his bail revoked today in a packed NYC courtroom. He'll be spending quality time in prison sharing Pruno recipes with his cellmates and trying not to drop the soap. His crime of ripping off an estimated $65 Billion is equivalent to the GDP of Croatia or Belarus and about 1/10th of the Obama stimulus package (just to give you some perspective on the enormity of this wad of cash). WSJ had a pretty good "moral of the story":

It wouldn't be the worst idea if managers at our trading houses put on every trader's desk a small plaque with those too-easily forgotten words, "Due Diligence." History attests that the world of too-good-to-be-true can smother due diligence, making any financial system vulnerable to thieves, dreamers and plungers.
Or, alternatively, there's only one job in the world where you can get a lot of money by lying on your back...and it has nothing to do with hedge funds.


Lisa said...

And where was the S.E.C. during all of these imbroglios? Not performing due diligence I'll wager.