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zugzwang

How High Up Did The Madoff Fraud Go At Jp Morgan?

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All the way to the top, of course!

“Madoff could not have stolen $64.8 billion of other people’s money without the complicity of a major financial institution. Madoff was able to get by with a three-person accounting firm working out of a store front in a shopping center in Rockland County, New York. But make no mistake about it. Madoff needed the imprimatur and facilities of a major bank. And JPMorgan Chase stepped up to the plate. Why would the bank do this? Shall we follow the money? Do you have any idea how much money JPMorgan Chase was able to make off the Madoff account? Did you know that Madoff maintained huge balances in his JPMorgan Chase account, reaching $4 billion or more from 2006 on. And do you think the folks at JPMorgan Chase know how to make money off other people’s money? You bet they do.

“The facts — which we lay out in this book — compel the conclusion that senior officers of JPMorgan Chase knew that Madoff was misappropriating customer funds and knew who all the victims were. There were 12 people who worked for Madoff who knew about Madoff’s embezzlement of money belonging to innocent investors. Outside of Madoff’s offices, nobody knew — for 20 years. Nobody, that is, except the people at JPMorgan Chase who were responsible to monitor the activities in Madoff’s account. They saw that, from 1986 to December 2008, Madoff deposited into his JPMorgan Chase account approximately $150 billion of funds — from upstate New York union pension funds, from charities, from corporate pension plans, from individual I.R.A. accounts. Bank officers knew that Madoff was an SEC-regulated broker who was retained by his customers to purchase securities for them. Yet, they saw no transactions in Madoff’s account indicating that he was purchasing securities for his customers. Instead, billions of dollars went to Madoff’s co-conspirators, or were wired overseas.”

“It is almost six years since Madoff confessed and yet, Madoff has never testified under oath; no one from JPMorgan Chase has testified under oath…The big question is whether Americans are going to continue to tolerate criminal conduct in its financial institutions. We know the government will; the question is whether the American people will.”

http://wallstreetonparade.com/2014/08/how-high-up-did-the-madoff-fraud-go-at-jpmorgan/

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There were a few other people outside JP Morgan that knew what Madoff was up to, all alerted by Harry Markopolos beginning 10 years before Madoff was sentenced. The US SEC ignored him for the entirety.

http://en.wikipedia.org/wiki/Harry_Markopolos

Chasing Madoff, the documentary is a great watch and gives the full picture http://www.imdb.com/title/tt1636849/

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The big question is whether Americans are going to continue to tolerate criminal conduct in its financial institutions.

That question has already been answered and it's Yes, they will. Many of the people who invested with Madoff suspected he was some kind of crook- his returns were just too good and consistent to be true. But they thought he was their crook- that he was working on their behalf- not realizing that the marks were themselves.

And the same mentality pervades the US Culture- they don't really want to end the Wall Street circus because they imagine that one day they will be joining the parade in the role of the ringmaster- when in reality their role is that of the clowns.

Wall street is disneyland for grown ups- a fantasy that is just too appealing to abandon.

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