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Madoff: Doomed Hedge Fund Magnate Speaks Out

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.

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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One Response to Madoff: Doomed Hedge Fund Magnate Speaks Out

  1. Howard Eisen says:

    I’m sorry, why is anyone in the financial arena giving Bernie Madoff a forum for providing his views. He forfeited that privilege when he became nothing more than a thief. CNBC, HedgeCo, and every other media outlet should treat his letters and opinions the same way investors should have treated his account statements: as worthless papers worthy of nothing but the trash bin. For an egomaniac such as Madoff, the harshest penalty is being ignored. So let’s do it.

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