Madoff in prison which leaves $50Billion unaccounted for!.

Bernard Madoff (aged 71) has been jailed for 150 years for swindling investors out of billions of around $50 Billion dollars over a decade(?) and UNDER THE very noses of the US Securities and Exchange Commission [ SEC ]. SEC chairman Christopher Cox stated "I was very concerned to learn this week that credible allegations about Madoff had been made over nearly a decade and yet never referred to commission for action," - credible and specific allegations regarding Madoff's financial wrongdoing going back to at least 1999!. Mr Cox said. "I am gravely concerned by the apparent multiple failures over at least a decade to thoroughly investigate these allegations or at any point to seek formal authority to pursue them,".

 

Points:

1. SEC tries to inspect investment advisers every 5 years ( relevance - Media ).

2. The SEC chairman alleged that Madoff kept several sets of books and false documents, and provided false information involving his advisory activities to investors and to regulators.

3. SEC boss admits failure. As SEC staff never recommended that the commission open a formal investigation, subpoena power was not used to obtain information and the staff relied on information voluntarily produced by Madoff and his firm. ( NO OFFICIAL POWERS? )

4. SEC agency's staff had never brought the Madoff matter to the attention of commissioners.

AND

5. A SEC Inspector General has determined that the agency's monitoring of the five biggest Wall Street firms, including Bear Stearns, was lacking.

 

SOME LOOSERS

RBS – The loss could amount to some 400 million pounds if the value of its assets were nil.

HSBC Holdings – A larger victim with potential exposure of about $1 billion.

Man Group - estimated its exposure at $360 million.

Natixis of <?xml:namespace prefix = st1 />France – exposure of about 450 million euros.

Nomura Holdings - earlier in the day said it had a 27.5 billion yen exposure

Three European banks announced a total of $3.8 billion in exposure

UniCredit SpA ( Italy's second-biggest bank ) revealed exposure of around 75 million euros

Reichmuth - said it had about 385 million Swiss francs at stake.

Santander put its client exposure at more than 2.3 billion euros ($3.10 billion)

BNP Paribas - said it could face a potential loss of 350 million euros

Bramdean Alternatives (15 12 2008), which had 9% of its funds invested with Madoff's scheme, said the SEC had given it a "clean bill of health".

 

Under US Gov Administration policies of deregulation meant that millions of mortgages where made to people who could never afford them while mortgage-backed securities have collapsed. All this while Credit Default swops ( CDS ) in multi-billion-dollar BETS that others go bust generate wealth through failure. Was the SEC understaffed through starving the agency of resources as some suggest?. 

 

The BIG QUESTION which surely remains is how the US Gov intends to compensate the Global Investment markets given that SEC, under its administration, accepts its failings and failings that were instrumental in creating great debt to other Nations. Precisely where is that fraudulent $50 Billion dollars now “resting” having been electronically debited from REAL peoples ACCOUNTS?. 

 

As the US, UK, EU and other Nations formulate New Policy Directives concerning Financial Regulatory systems which system will be adopted as the STANDARD given that they will all share one thing in common – A digital cable connecting them all.