For many who simply learn the information and consider no matter they report, within the trade, everybody talks on a regular basis. If Madoff was shedding billions buying and selling, everybody would have recognized. It’s one factor to have a portfolio of belongings that itself collapses in worth which might NOT contain buying and selling, then that presents a extra non-public problem however everybody would suspect one thing for the information can be circulating round as to what he purchased. There may be simply no approach cash vanishes. The probably prospect is that Bernie was conscious of the darkish aspect of Wall Avenue and maybe facilitated that for a value.
Bernie’s case started on December tenth, 2008. Lehman Brothers and Bear Stearns each collapsed and the Fed took over Fannie & Freddie. The collapse of Lehman shocked the world and that unleashed actual panic. That above all took down Madoff, however then got here the bailout of AIG which was actually to save lots of Goldman Sachs. Little question, Bernie was hit with withdrawals and on no matter funding he did have in place, he would have misplaced a fortune and not using a Ponzi scheme. With the follow of laundering cash happening in NYC, little doubt the counterparty dangers collapsed. That almost certainly pushed Bernie over the sting.
Perceive one factor. Madoff didn’t collapse in isolation. His losses have been curiously immediately attributed to a Ponzi scheme. That was very handy. Calling one thing a Ponzi scheme as a matter of regulation meant that EVERY transaction was a fraud. Due to this fact, that cuts off all investigations to grasp what actually occurred. It’s not wanted as a result of every part and each transaction needn’t be investigated as a result of it was all Bernie as a fraud.
So long as they referred to as it a “Ponzi Scheme” there was no investigation into cash laundering.
