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:

triangleA socialist approach to Corbyn and a customs union

triangleCapita in crisis: bring all outsourcers back in-house

triangleThem & Us

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

triangleRBS to sack 1,000: nationalise the banks

Bradford & Bingley:

triangleBradford & Bingley: We need real nationalisation

triangleMarket madness!

Market:

triangleMay's EU speech kicks the can down the road

triangleThe Socialist inbox

Hedge funds:

triangleNHS SOS round-up

Reports and campaigns

Reports and campaigns

25/4/18

NUJ

Journalists' union leaders defeat call for political fund, but potential for left grows

25/4/18

Usdaw

Retail union backs zero-hour ban, leaders oppose rank-and-file coordination

25/4/18

McDonalds

McDonald's strikers: "We demand a living wage and decent conditions"

25/4/18

Yorkshire

Sheffield and South Yorkshire: no to closures - defend our NHS

25/4/18

Southampton

Southampton: the cuts or no cuts election

24/4/18

Newham

School strike forces head to say privatisation will stop

23/4/18

Hull

College protest against job losses

22/4/18

Bromley

Bromley library workers win strike campaign

18/4/18

UCU

UCU members vote to end pensions dispute

18/4/18

Usdaw

Usdaw conference 2018: time for new era of fighting trade unionism

18/4/18

Leeds

Victorious Fearnville Fields campaigners thank the Socialist

18/4/18

Hull

Hull says no to war, no to austerity

18/4/18

The Socialist

The Socialist - a fighting, campaigning, workers' paper

18/4/18

Socialist Party

Building fund: 150,000 milestone smashed!

18/4/18

Fighting Fund

Give us your change (and more) to fight for system change!

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: info@socialistparty.org.uk

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 0798 202 1969

East Mids: 0773 797 8057

London: 020 8988 8786

North East: 0784 114 4890

North West 07769 611 320

South East: 020 8988 8777

South West: 07759 796 478

Southern: 07833 681910

Wales: 07935 391 947

West Mids: 02476 555 620

Yorkshire: 0114 264 6551

ABOUT US

ARCHIVE

Alphabetical listing


April 2018

March 2018

February 2018

January 2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999