Notes from Senate Banking Committee Hearing on Madoff

From Bruce Carton at Compliance Week: Notes from Today's Senate Banking Committee Madoff Hearing. Interesting excerpts: Thomsen–Ponzis hard to detect because nobody complains until money stops flowing out. Hard to detect before it stops. Harbeck–Experts say Lehman Bros. and Madoff…

From Bruce Carton at Compliance Week: Notes from Today’s Senate Banking Committee Madoff Hearing.

Interesting excerpts:

  • Thomsen–Ponzis hard to detect because nobody complains until money stops flowing out. Hard to detect before it stops.
  • Harbeck–Experts say Lehman Bros. and Madoff are cases that should occur every 5,000 years and they occurred in a one year period.
  • Thomsen–we have huge amounts of information. Need to find best ways to mine it.
  • Thomsen says SEC gets 100,000 unsolicited tips/complaints per year.
  • Prof. Coffee say no mutual fund has ever failed because of a Ponzi scheme because an independent custodian holds funds.

  • A link to Hearing testimony is here.

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