I missed last night’s show on Madoff (in fact, I don’t watch the show, but would have had I known Walt was going to be on) but a reader sends this link to Walter’s letter to CBS.
As far as I can see, Fairfield Greenwich Group’s defense is that they received phony trade confirmations and their clients got their money back when they asked for it – until they didn’t. Doesn’t help their case that Bernie in fact made no trades whatsoever during the years, so “monitoring” wasn’t very deep and the investigation of Madoff Securities was non-existent despite what FGG promised in their promotional materials.
The Fairfield Greenwich Group and its employees are victims of the Madoff fraud.
Fairfield personnel invested with Madoff alongside our customers, and we appear to have lost
$60 million of our own money.
Over the course of a 20-year relationship, Fairfield received trading confirmations from
Madoff that purported to reflect the trades he was making for our investors. Our investors
received over $3 billion in response to redemption requests that were honored promptly and
without question by Madoff.
Contrary to speculation that has appeared in the media, Fairfield engaged in continuous,
ongoing monitoring of Madoff’s activity. That monitoring and the fact that every redemption
request was honored — combined with Madoff’s then-impeccable credentials, reputation and
technology, multiple reviews of Madoff by the SEC, the NASD and numerous auditors and
investors, high credit ratings assigned to Madoff-related products by Fitch, S&P and Moody’s,
and an unblemished course of dealing over many years — all contributed to our confidence that
the investments with Madoff were appropriate and safe.