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Here's what's so astonishing about that so
you or I don't have the power to subpoena
money managers and brokerage firms only regulatory agencies do
the SEC or you know the OCC
people like that
so
all they had to do was call DTC
and say how much money does Bernie Madoff actually run in this supposed Hedge fund
%uh in fact in two thousand Bernie Madoff himself
was interviewed in jail and he said
i'd finally gave the number two the SEC in two thousand six
and they never called
the numbers to his alleged account well they were accounts gave them the DTC account
number and said
he said he was astonished
he gave them to them on a Friday afternoon he figured on Monday morning it would be all over
came in Monday morning nothing happened I should correct that
the SEC examiner called but she failed to ask the right question
apparently from from what I from what I gather
and you've alluded to this
there were questions about Madoff all over Wall street and all over Europe 0:01:11.610,0:01:14.510 and %uh for some reason
nobody except Markopolos and a few others
a ever went
to the SEC
with their with their questions
%um
and in fact that Markopolos said
%uh he he's he said that to the SEC
you should talk to x at goldman sachs and y at credit suisse
%uh and do it without lawyers being present
for some reason I guess the lawyers you know tend to stifle people for fear of fraud
or whatever of for for fear of bribery or whatever
you mentioned a huge number of people
and maybe %uh you can just run through who some of them were
credit suisse society generali
Laura Goldman jack nash
picard james newman 0:02:10.319,0:02:13.159 who who are who were these people
because they had suspicions and they never told the SEC
look there is no
rule on Wall street that if you come across a crook
you have to turn him in
there were also
very serious %uh
ramifications
for questioning somebody of Madoff's stature back then
even in two thousand one when I wrote the story for Barrons
he had been chairman of NASDAQ the ramifications were
you could lose your job
%uh because Bernie would call up Goldman Sachs and complain absolutely
I mean one of the guys I interviewed
for the article didn't want to be named he's in the book
his name is ken nakayama
I owe ken
basically
not only the original article but 0:03:05.809,0:03:10.359 the inspiration for the book and ken worked at Deutsche bank at the time
he was head of
research for equity derivatives
and
he was the one who tipped me off to this hedge fund that never lost
money
ken
could have faced some serious consequences for having his name used in this story
here's another example
one of my sources at the time worked at merrill lynch in their alternatives
department which over sees hedge funds
he was terrified of %uh
of talking about Madoff but he was very worried for his clients because every time
he went to do due diligence on Madoff he got nowhere
couldn't even get a visit to the office
but he didn't want to pull the money out because it turned out his boss at merrill lynch
was an investor
so imagine
you go to your boss and you say boss
%uh I think we should pull out of Bernie Madoff's fund because
I can't figure out what he's doing and
there's a lot of funny business going on
and I can't get anywhere on the due diligence and your boss says well I'm an
investor and see ya later