The Madoff Scandal

[3kings]

Originally Posted by timmgirvan

The biggest stock scandal ever?? The SEC knew about this goof, and still allowed his scheme to snowball!...they should be made to pay the 50Bil back to victims.....maybe they'd do their jobs better...so there won't be a next time.

This is a pretty liberal idea for you, isn't it?

[Danzig]

no way the govt can pay back the money lost. just think if they did that, everyone with a 401k would be lining up for the guv to pick up their losses as well. if you want protection on your money, put it in an acct protected by fdic.
yes, it sucks they lost their money. but perhaps they should have invested more wisely? too good to be true, no matter the bottom line #, always is just that.

[gales0678]

here is what we know - they have found 1 billion so far

whoever got a redemption over the last 7 yrs will have to give the money back - we don't know what that figure is but my guess is that it could be a significant amount

[SCUDSBROTHER]

Originally Posted by Danzig

no way the govt can pay back the money lost. just think if they did that, everyone with a 401k would be lining up for the guv to pick up their losses as well. if you want protection on your money, put it in an acct protected by fdic.
yes, it sucks they lost their money. but perhaps they should have invested more wisely? too good to be true, no matter the bottom line #, always is just that.

Gov't was partially responsible for ignoring this fraud(when told about it.) I agree that investing has risks, but this wasn't simply a case of bad investing(it was fraud that they should have been protected from.) I agree with the part about "too good to be true." They should not get it all back, but I don't think they should get a total stiff. They should get a half, or a third etc. How is it we are bailing out companies that paid incredible bonuses out to people, but investors caught up in an absolute fraud(that should have been stopped much earlier) can't get any of their money back? I don't think the punishment(total stiff of some pretty decent citizens) fits our common American values. I think it's a special case, and shouldn't be over simplified. Of course, we shouldn't be bailing out bad investors, but these people never had a chance (lie after lie that should have been noticed by authorities that were paid by these citizens to do jobs like keep an eye out for scum like this.)

[Riot]

Originally Posted by SCUDSBROTHER

Gov't was partially responsible for ignoring this fraud(when told about it.) I agree that investing has risks, but this wasn't simply a case of bad investing(it was fraud that they should have been protected from.

There were plenty of money managers that looked at investing with Madoff, and saw it wasn't a good idea. Yes, he wasn't investigated when he should have been (when he was first reported), absolutely - but anybody who did basic due diligence didn't invest with him.

When a Nigerian Prince asks you for money, you really shouldn't hand it over

[timmgirvan]

Originally Posted by 3kings

This is a pretty liberal idea for you, isn't it?

I think of it as justice!....they let a crook slide for at least 4 years. Govt. Accountiblity anyone?