So, it seems that a bloke called Madoff has had away with umppteen billions of dollars by running what amounts to a rather more sophisticated version of the old pyramid scam where the investments of new iinvestors are used to generaye profits for the older ones and that no new profit is actually created. It would also seem that amongst those who were taken in by this con were HSBC and The Royal Bank Of Scotland to the tune of hundreds of millions of pounds.
Any chance that the directors, fund managers or whatever of these institutions will ever be held to account for falling for this scam ?. I wouldnt hold my breath. Doubtless, most pf them will be employed elsewhere by now or, having taken their golden handshakes, will be looking to sit out the developimg recession/depression in somewhat sunnier climes.
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Beyond belief indeed. Although investors should have been far better protected by the SEC (surely heads must roll there), there was still a large measure of 'buyer beware'. If you are investing billions you have a duty to investigate fully and if Madoff refused to satisfy their questions they should have walked away. Nobody pays 10% in this economic climate. All these banks should be reminded that if something seems too good to be true ..... it invariably is. No matter how many noughts are on the cheque.
And now it appears that the SEC were warned about Madoff and chose not to carry out a full investigation several times over the past 10 years. I dont doubt that Madoff is not the only one who has been at it and I dont doubt that some on this side of the pond may well be exposed as this crisis continues to unfold.
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