Ponzi redux: Madoff explains how the market works VIDEO!

[Joanne98]

by jmknapp

Sat Dec 13, 2008 at 03:40:35 PM PST
On Oct. 27, 2007, Bernie Madoff, the former NASDAQ chairman who was arrested last Thursday for engineering a $50 billion dollar Wall Street Ponzi scheme, participated in a roundtable discussion titled "The Future of the Stock Market." The two-hour video of this discussion is on YouTube.

I extracted some of the choicer bits where Madoff or his tech guy were speaking into a 30-minute video:

The moderator introduces Madoff as someone unknown to most people, but "10% of stocks traded in the United States are going through right now." Despite this activity, he adds, "I visited Madoff and it's a very quiet place."

more...

http://www.dailykos.com/storyonly/2008/12/13/18944/953/452/672804

[Joanne98]

1. Some interesting info from the comments section

impossible to violate rules? (18+ / 0-)

The reason it was impossible to violate rules in 2007 is that, following enactment of the Commodity Futures Modernization Act of 2000, there were no rules left to violate, especially on the electronic exchanges where Madoff was big. The legislation specifically exempted electronic exchanges from regulation or oversight by anybody - SEC, Federal Reserve, Treasury Department, etc.

The timing of the passage of that act is interesting, by the way. Gore conceded on December 13. On December 14, the legislation was submitted to the appropriate House subcommittee, where it was stapled into a budget bill for FY2001, which began Oct. 1 2000, as an appendix, (Appendix E, I think I remember). It was passed by the House on a roll call vote, and passed by the Senate by "unanimous consent" on December 15, the last day before the Christmas recess and the last day of the session for all practical purposes.

The legislation was never discussed nor debated in any committee, there are no recorded committee votes, and there is no recorded roll call Senate vote.

-6.13/-6.31

by count on Sat Dec 13, 2008 at 04:07:19 PM PST


Sponsers of that Bill (8+ / 0-)

The "Commodity Futures Modernization Act of 2000" (H.R. 5660) was introduced in the House on Dec. 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.<2>

The companion bill (S.3283) was introduced in the Senate on Dec. 15th, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen. Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.

http://en.wikipedia.org/...

by Bluehawk on Sat Dec 13, 2008 at 04:39:24 PM PST

[Hugin]

2. "introduced in the Senate on Dec. 15th, 2000 "

If memory serves, that was a mere couple of days after the USSC handed the selected the Resident.

[Hugin]

3. Gee, so the destruction was never debated at all and never even really voted on?!!!?

There aughta be a law against this sort of thing. :grr:

[peacetalksforall]

5. Harkin and Tim Johnson? What's up with that? Anyone remember this?. Oh the Cold Truth hurts so.

What tricks and thefts of the people.

[peacetalksforall]

6. Are there any Duers on board from IA or SD, NY ? Can you e-mail these people

and ask their reasons? Anyone remember any of them before a camera talking about this?

Leach of Iowa and Harkin of Iowa. Interesting.

[Karenina]

4. ...

My, oh my!