Adam Feurstien of RM said does Madoff investors deserve a bailout from tarp?

[Aaron Copland]

Quote from mahram:

It brings up a good question, do the madoff investors deserve a bailout. If some of the madoff investors fail it could cause serious economic and systemic damage?

Yes the big investors will be bailed out, the little ones will get crumbs. Don't ever think the game is not rigged.

Just watch how the American tax payers turns over its hard earned cash to failed scam artisits.

 

[cane1214]

Quote from Susannah:

No. They can get the $100k the SIPC allows them to get.

I believe the max is $500k. There's some politicians who also got hosed so chances are there will be a bailout imho.

 

[mahram]

well the systemic risk is that banks,hedgefunds, foundations, etc will lose billions, and cause massive layoffs b/c some banks put alot of money into madoff funds. They also count those madoff funds as assets and used as collatorol, causing systemic risk to the system. thats what the aim said, so I guess they might get 10 billion or something.

Quote from sandygray66:

I can't fathom how there would be a justifiable bailout given that there's no systemic risk caused by the Madoff fraud.

In the very unlikely event there is some kind of bailout (other than SIPC making good on valid brokerage acount insurance, not hedge fund investments), I might have to start giving some credence to the Zionist conspiracy theorists, given that something like 90% of the individuals and charities that invested with Madoff are Jewish (at least based on what's been reported in the media).

 

[sandygray66]

Quote from mahram:

well the systemic risk is that banks,hedgefunds, foundations, etc will lose billions, and cause massive layoffs b/c some banks put alot of money into madoff funds. They also count those madoff funds as assets and used as collatorol, causing systemic risk to the system. thats what the aim said, so I guess they might get 10 billion or something.

From what I've read, the vast majority of the investments were from trusts, funds, private investors, endowments, etc. The financial institutions that had money with Madoff was mostly on the behalf of clients, not actual corporate capital. Now, those institutions may face some liability from lawsuits over due diligence in deciding where to place clients' investment funds, but that will take years. I don't think there are any corporate capital problems stemming from this fiasco, particularly none with U.S. banks.

 

[MandelbrotSet]

Madoff was a good old boy who's been around for decades.

Nobody saw this coming because they couldn't fathom someone who had such a tenured history of professionalism as being such an out-and-out greed driven crook.

No one deserves anything from this, except Madoff himself, and 20 years in the pen ain't enough.

They get nothing.

 

[Susannah]

Quote from cane1214:

I believe the max is $500k. There's some politicians who also got hosed so chances are there will be a bailout imho.

It's $100k if its cash.

 

[makloda]

Quote from mahram:some banks put alot of money into madoff funds.

They sold these as products to their wealthy clients. The banks lost nada (well, they lose assets under management they don't get future fees on).

 

[stock_trad3r]

Quote from sammybea:

Pelosi to the rescue!!!! Barney Frank and Pelosi prob will go down in history as the most irresponsible pols in history. They will no doubt extend this recession for a generation to come.

You're deluded. Bailouts are good for the economy and stock market because the money is free.

 

[Lucrum]

Quote from mahram:

It brings up a good question, do the madoff investors deserve a bailout.

NO!

But then neither does anyone else.