ABC: SEC **KNEW** about Maddoff for 10 years and did NOTHING!

Discussion in 'Current Events' started by DavidS, Dec 16, 2008.

  1. DavidS
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    DavidS Anti-Tea Party Member

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    This was just reported on Nightline... it's time for Cox to resign the SEC chairmanship and for the SEC to be completely overhauled.
     
  2. indago
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    indago VIP Member

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    Journalist Nelson D. Schwartz wrote for the New York Times 16 December 2008:
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    PARIS — In early 2003, as word of Bernard L. Madoff’s apparent Midas touch spread among affluent Europeans and money managers, a team from Société Générale’s investment bank here was sent to New York to perform some routine due diligence.

    What it found that March was hardly routine: Mr. Madoff’s numbers simply did not add up. Société Générale immediately put Bernard L. Madoff Investment Securities on its internal blacklist, forbidding its investment bank from doing business with him, and also strongly discouraging wealthy clients at its private bank from his investments.

    The red flags at Mr. Madoff’s firm were so obvious, said one banker with direct knowledge of the case, that Société Générale “didn’t hesitate. It was very strange.”

    While the bank kept the discovery to itself, as is common in the secretive world of wealth management, the information saved Société Générale more than embarrassment: its total exposure to Mr. Madoff’s apparent Ponzi scheme is less than 10 million euros, or $13.8 million.

    That’s a fraction of the losses at competitors like BNP Paribas or HSBC, which made loans to institutions that invested with Mr. Madoff, who prosecutors say paid investors by raising money from others rather than generating real profits.
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    Last edited: Dec 17, 2008
  3. sylverfoxx
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    sylverfoxx Member

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