New York (HedgeCo.Net) – The master of manipulation, Bernie Madoff, second only to Charles Ponzi himself, sent out a Christmas memo claiming that “Insider trading… has been present in the market forever, but rarely been prosecuted.”
“Markets have always focused on the speed with which information becomes available…. The more secret this information. The more valuable this information is to those that can obtain it. Therein lies the problem. It is naive to think that there will be no leakage of this information.” Madoff said in a letter to CNBC.
“The other area of discussion involves the growth of hedge funds, particularly feeder funds. In spite of my early held belief… that the extra layer of costs related to commissions and profit sharing that went along with feeder funds… It has been this additional layer of costs that have created the need for more risk to be taken to earn worthwhile returns. This has created a minefield of regulatory problems involving the very reasons that the desire for a lack of transparency has grown. Both of these areas are going to be the greatest challenge that both the industry and the regulators are going to face.” Madoff concluded.
Madoff is currently serving a 150-year sentence for manipulating the markets in the years leading up to the financial crisis.
Editor for HedgeCo.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!