Jamie Dimon and the rest of the criminal bankers knew Madoff was running a Ponzi Scheme. They didn’t have a problem with that, because it is their business plan. The entire Federal Reserve fractional reserve banking system is a Ponzi Scheme. Bankers get rich, while the rest of us are screwed. The SEC knew Madoff was running a Ponzi Scheme for years. It took Harry Markopolos a couple days to prove Madoff was running a Ponzi Scheme. You’re telling me the thousands of Ivy League MBA bankers working on Wall Street couldn’t do the basic math to figure out Madoff’s returns were impossible to achieve?
The government doesn’t want this out in the open. Therefore, it will never see the light of day. So it goes.
Madoff points finger at the banks
- Getty Images
Bernard Madoff, speaking out from prison, says the banks knew of his Ponzi scheme all along. Madoff, perpetrator of a $50 billion Ponzi scheme, wrote in a letter to MarketWatch from jail that he is telling government committees about it.
Madoff: From my first interview to the media I have said that ‘the banks must have known,’ and were complicit and contributing to my crime.”
In the emailed letter, he pointed to J.P. Morgan Chase & Co.
/quotes/zigman/272085 /quotes/nls/jpm JPM -1.93%, Bank of New York Mellon Corp.
/quotes/zigman/445224 /quotes/nls/bk BK -1.41%, HSBC Holdings PLC
/quotes/zigman/207333 /quotes/nls/hbc HBC -1.15%and Citicorp Inc.
/quotes/zigman/5065548 /quotes/nls/c C -1.09%He said there are other banks that knew.
Madoff wrote that “the trustee seems unwilling to act on my offer” to help and he is therefore “offering this information to the appropriate governmental committees in the hope that this information will prove helpful in future regulation of the appropriate institutions.”
The House financial services committee and the Senate banking committee had no immediate comment on whether they had received any information from Madoff. A spokesman for the Office of the Comptroller of the Currency declined to comment and a spokesman for the Treasury Inspector General’s office did not return calls.
Madoff’s comments come as prosecutors are looking at whether J.P. Morgan failed to fully alert authorities to suspicions about Madoff’s finances, according to a report in the New York Times on Wednesday.
Madoff’s comments also come as J.P. Morgan Chase & Co. is reportedly embroiled in a squabble with regulators over a government probe into the institution’s relationship with Madoff. According to a January Reuters report, the OCC, J.P. Morgan’s chief regulator, has been unable to obtain documents it has requested from the big bank in connection with an investigation into its relationship with Madoff.
The report cites a letter from Treasury Department inspector general Eric Thorson to J.P. Morgan’s general counsel, Stephen Cutler, saying the OCC has been unable to obtain what it is seeking. Madoff had an account at J.P. Morgan Chase that he used to transfer funds between offices.
Madoff, a former stock broker, investment advisor and white collar criminal, swindled thousands of investors of billions of dollars in what was considered the largest financial fraud in U.S. history. Madoff admitted he turned his asset management business into a massive Ponzi scheme and was sentenced to 150 years in federal prison.
– Ron Orol, Sital Patel