Saturday, March 28, 2009
Clawbacks for Joe Sixpack, Billions for Goldman
"Investors who lost money with financier Bernard Madoff are girding for potential 'clawback' suits that might be brought by the trustee in charge of liquidating Mr. Madoff's firm. ... The alleged Madoff fraud is now being viewed as a classic Ponzi scheme. ... Under the bankruptcy code those who will be most susceptible to a clawback are investors who withdrew any money in the 90 days before Mr. Madoff's arrest in Dec. 11, attorneys say. ... New York state law allows [Irving] Picard to seek funds transferred from Mr. Madoff's firn in the past six years. Investors may be asked to give back profits and some of their initial investments to help offset losses by other investors. ... Attorneys say it is likely that some Madoff investors are pursuing a variety of strategies to protect their assets from the trustee. Few are likely to trumpet them, since such moves could be viewed as a fraudulent conveyance, the illegal transfer of property with the intent to commit fraud", Jane Kim at the WSJ, 12 March 2009.
Compare the Madoff investors' fate to that of AIG's counterparties. What a country. See my 21 November 2008 post: http://skepticaltexascpa.blogspot.com/2008/11/bust-outs-and-paulson-mob.html. Uncle Sam robs peasants to feed Goldman Sachs and other Wall Street hogs. Innocent investors who took some of their funds back from Madoff may be subject to "clawback". This is why Zimbabwe Ben can't let AIG go bankrupt. Lots of things could become public the "usual suspects" want to conceal. Ready that CNC guillotine. It has a lot of work to do. See also my 18 December 2008 post: http://skepticaltexascpa.blogspot.com/2008/12/deprizio-doctrine-and-aig.html.