Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://www.socialistparty.org.uk/issue/561/6737

From The Socialist newspaper, 7 January 2009

Madoff with the money!

WORSHIPPED BY financiers as the 'guru' of hedge funds, it turns out that wealthy New York socialite Bernard Madoff is nothing more than a fraudster.

Dave Carr

And what a fraud! Madoff, the former head of the Nasdaq stock market, swindled banks and other investors out of $50 billion (33 billion). It is probably the biggest fraud in the history of financial markets.

At the same time as the scale of the fraud was being revealed, Tory leader David Cameron was giving a speech praising the financial regulatory system in the USA!

Ironically, Madoff had served on the advisory committee assembled by the Securities and Exchange Commission (SEC), America's main market watchdog.

It turns out that Madoff had been operating a Ponzi* scheme ie nothing more than a pyramid scam - where investors are lured by high returns, unaware that the returns are actually being paid by new investors.

Madoff's philosophy appears to have been: 'There's a sucker born every minute', as the rich and financial capitalists lined up to be ripped-off. Part-nationalised UK bank RBS is one casualty of this fraud. Another is London-based Bramdean, headed by City "superwoman" Nicola Horlick. Bramdean described Madoff's hedge fund as "low risk, high liquidity"!

Yet another victim is Santander, which owns the Abbey, Alliance and Leicester banks. It revealed that one of its funds had $3.1 billion invested in the firm run by Madoff.

Santander, it should be recalled, was given at least 18 billion by the Labour government to take over the savings and branches of the failed Bradford & Bingley bank. In effect, the public purse has been robbed by a high-class fraudster.

Madoff's scam only came to light as a result of the financial crash on the world's stock markets which hit hedge funds particularly hard. As investors attempted to withdraw their money Madoff's fund was revealed as an empty husk. But this massive fraud begs the question, how many more scams are out there waiting to be revealed?

(*Named after Charles Ponzi - a US fraudster in 1920.)

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 7 January 2009:

Stop the Slaughter in Gaza

Thousands protest against the Israeli onslaught


Socialist Party Marxist analysis

2009 - putting socialism back on the agenda


Socialist Party youth and students

Youth fight for jobs


Socialist Party campaigns

The great rail fares rip-off

Madoff with the money!

No festive joy for shop workers

Labour ministers' unsocial fund

Plutocrats lose

Make the poor pay


Celebrity Big Brother

Tommy Sheridan in Celebrity Big Brother


International socialist news and analysis

USA: Chicago factory workers occupation wins concessions


Socialist Party workplace news

For a fighting Usdaw leadership

South Wales: Workers vow to fight job losses

BT: reluctant vote for pension cuts

No redundancies at GSK!

Salford council: Equal pay, not pay cuts!


Environment and socialism

No to the toxic incinerator!


 

Home   |   The Socialist 7 January 2009   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Banks:

triangleThem & Us

triangleWidening wealth gap, increase in poverty...make the fat cats pay

triangleRBS to sack 1,000: nationalise the banks

triangleAmber warning lights flash on British economy

triangleHousing crisis: Corbyn's positive measures blanked by Labour's right

Bradford & Bingley:

triangleBradford & Bingley: We need real nationalisation

triangleMarket madness!

Market:

triangleClosure of Nottingham unit shows dismantling of NHS

triangleThem & Us

Hedge funds:

triangleNHS SOS round-up

Reports and campaigns

Reports and campaigns

12/1/18

Waltham Forest

Outrage against 'monster block' plan

12/1/18

Manchester

Mini-strike wave continues and intensifies

10/1/18

McDonalds

Strike wins biggest pay rise in ten years

10/1/18

Usdaw

Amy Murphy for Usdaw president - vote for a fighting and democratic union

10/1/18

The Socialist

Socialist sales highest in years as mistrust in capitalist media hits record levels

10/1/18

Fighting Fund

2017 was the best fighting fund total this century!

10/1/18

NHS

Closure of Nottingham unit shows dismantling of NHS

10/1/18

Hackney

Hoxton: "Stop this unwanted development"

10/1/18

Newham

Newham academy strikes spread to Cumberland school

8/1/18

RMT

RMT rail members buoyed by coordinated action

4/1/18

RMT

Strike against driver-only operation on five rail networks

3/1/18

Higher Education

UCU members balloting for action on pension cuts

3/1/18

Bradford

Bradford protest against children's service cuts

3/1/18

Leeds

Leeds college pay protests

3/1/18

National Education Union

Equal sick pay rights for staff at Charlton Park Academy

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle15 Jan Carillion crisis: Demand action to save jobs and services

triangle12 Jan Outrage against 'monster block' plan

triangle12 Jan Mini-strike wave continues and intensifies

triangle10 Jan Strike wins biggest pay rise in ten years

triangle10 Jan Movement of workers and youth challenges Iranian regime

triangle10 Jan Cabinet chaos as shambolic reshuffle underlines Theresa May's...

triangle10 Jan Sustained mass movement needed to stop Tories wrecking our NHS

More ...

triangle16 Jan Bristol North Socialist Party: 'Bad Art' - socialist struggle in the arts

triangle16 Jan Cardiff West Socialist Party: Building socialism in Cardiff in 2018

triangle17 Jan Cardiff Central Socialist Party: Planning for 2018

triangle17 Jan Salford Socialist Party: Housing crisis - the socialist solution

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

January 2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2