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Madoff Interview contains unreported gem
Out of shear boredom, I read the SEC's BernieMadoff interview posted at CNBC.
http://www.sec.gov/news/studies/2009/oig-509/exhibit-0104.pdf
While the entire read is entertaining (from someone who did not have money invested with this thief), there is what I consider to be a gem in the bottom of page 11 and on to page 12, which I've copied below:
Wow! So that's what is meant by off-book toxic assets!Madoff noted that the industry is growing incredibly complicated. He gave the
example of when his firm put up a credit default swap and didn't know how to do the books. Madoff said he didn't know, and it wasn't in manuals, so he called (withheld) He said he didn't know, but conferenced in another industry person, who told him to put it in his London office books. He said he called Merrill Lynch, Lehman Bros, five firms total, all of which didn't know. He said the NASD had no clue. Madoff stated that today, lots of trades are done off the books because people don't know what to do with them.
Gold production is going down and dollar production is going up... isn't there only one thing that can happen? Gold is money.
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There's Too big to Fail, and then there's Too Complicated To Understand! <shaking my head>
Don't Steal. The Government hates Competition.
Location: Milford, CT USA
PS: CNBC's "version" of the story doesn't even mention the portion above. Their story focuses on Madoff's amazement at not being caught and his perceptions of the various SEC investigations and investigators.
http://www.cnbc.com/id/33590661/
excerpt:
Gold production is going down and dollar production is going up... isn't there only one thing that can happen? Gold is money.