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…A PERVERSE MONUMENT TO TWO DECADES OF FINANCIAL GLOBALIZATION…

April 2, 2017

“The day after the music stopped for Bernie Madoff, the long march began for his victims.” (Page 210).

“At first there was no way to know even how many victims there were, much less where they were going and what they would find when they got there. The only clue was that staggering number from Madoff himself: $ 50 billion.
Within hours of Madoff’s arrest, self-proclaimed financial experts on the Internet had dismissed the figure as grandiose and implausible. Others accepted it as possibly true but argued that it probably represented only paper profits, not cash losses – as if a paper loss that wiped out everything you owned was somehow less damaging than a cash loss. In fact, Madoff’s estimate was low. It would soon be established that $64.8 billion in paper wealth vanished when Madoff was arrested, including cash losses of about $20 billion.” (Page 210-211).

“What immediately became apparent was the astonishing geographical reach of Madoff’s crime, a perverse monument to two decades of financial globalization. The list soon included Swiss private bankers, a Singapore insurance company, a Korean teachers pension fund, an Italian bank holding company, major Japanese Banks and insurance companies, trust funds in Hong Kong, Dutch money managers, a sovereign Wealth fund in Abu Dhabi, a French cosmetics heiress, minor royalty in England and Monaco, two Catholic schools on St. Croix, hedge funds in Luxembourg, and wealthy families in Mexico, Brazil, Argentina and Dubai. One legal consortium in Europe would later estimate that as many as three million people were touched by the scandal.
In the United States, the visible victims included trustees of cultural institutions in New York, retired Wall Street executives, wealthy real estate developers in Chicago, respected academic figures in Boston, a foundation in Seattle, a state legislator in New Jersey, and a cluster of retirees in Aspen, Colorado. Even the International Olympic Committee had a sliver of its assets invested with Madoff.“ (Page 212).

SOURCE: The book “The Wizard of Lies Bernie Madoff And The Death Of Trust” By Diana B. Henriques, Times Books Henry Holt And Company New York, 2011

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