• 24 Dec 2008 at 9:30 AM

Opening Bell: 12.24.08

Picture 469.pngWith Roots in ’70s, Madoff Scheme Takes New Toll (WSJ)

From time to time Mr. Gettinger would try to engage Mr. Madoff in talk about his investment strategy. “I asked him about it several times and he wouldn’t talk,” said Mr. Gettinger. “Anytime you would talk to him about his business he would tell you he wasn’t going to make any disclosures, he had a proprietary trading system and he wouldn’t tell.”
Suspicions about Mr. Madoff’s trading also go back further than whistle-blowers have alleged. In 1991, a consultant hired to review a corporation’s investments with Mr. Madoff made in the late 1980s grew suspicious about his returns. According to client statements and other information gathered by the consultant and reviewed by The Wall Street Journal, between 1980 and 1990, the consultant found that Mr. Madoff claimed to his client to have earned 22.6% per year, double the average return on the Dow Jones Industrial Average during that time.

Also the Smothers Brothers, i.e. Mark and Andy, have yet to be contacted by prosecutors because apparently even entertaining the thought of family members testifying against one another is just too awkward.

L’Oreal Heiress Bettencourt Said to Have Invested With Madoff
(Bloomberg)
Given that he scammed 8 billion people it shouldn’t come as a shock that we’ve got some pretty good stats in there, like his victims included “the world’s richest woman” and the first-known talking dog, who resides in Boca.
Layoffs Watch ’08: Glenview (NYP)
L-train has laid off a bunch of staff, and will probs cut compensation for existing employees significantly next year. This makes some sense.
SEC chief defends response to economic turmoil (Reuters)
Chris Cox: Orator (If you missed it, Track 1 can be found here.)

What we have done in this current turmoil is stay calm, which has been our greatest contribution — not being impulsive, not changing the rules willy-nilly, but going through a very professional and orderly process that takes into account unintended consequences and gives ample notice to market participants,” Cox told The Washington Post.
This caution “has really been a signal achievement for the SEC,” said Cox.
“When these gale-force winds hit our markets, there were panicked cries to change any and every rule of the marketplace: ‘Let’s try this. Let’s try that.’ What was needed was a steady hand,” he said.

He Can’t Speak Worth A Damn, But This Is Good (WaPo)
Cox said the biggest mistake of his tenure was agreeing in September to an extraordinary three-week ban on short selling of financial company stocks. But in publicly acknowledging for the first time that this ban was not productive, Cox said he had been under intense pressure from Treasury Secretary Henry M. Paulson Jr. and Fed Chairman Ben S. Bernanke to take this action and did so reluctantly. They “were of the view that if we did not act and act at that instant, these financial institutions could fail as a result and there would be nothing left to save,” Cox said.”
You are getting one ‘Don’t Short Me, Bro‘ t-shirt and a matching thong, on the house, Mister!

Jamie Foxx and Terrence Howard: Sing Off?
(Blog)
Gary Busey apparently entered a celebrity lip syching contest and lost. That is some bull shit.
Programming Note: We’re on an abbreviated vacation-esque schedule ’til ’09, or the urge to reach out and touch you moves us. Off for the big birthday tomorrow, with opening/closing wraps today, Friday, next week. We still want to hear from you, though, so if Bernie Madoff slips in the shower and you’ve got pics, do not hesitate to let us know.
Oh, and Geoffrey Raymond has finally completed his Madoff/Tony Bennett, which he couldn’t have done without your help.


Red are Dealbreaker readers, Green are drinkers at the Peter McManus Cafe.
madoffraymond.jpg
berniemadoffgeoffreyraymond [click to enlarge, click again to read up close]

Comments (60)

  1. Posted by guest | December 24, 2008 at 9:40 AM

    Chris Cox is a cox-head, this guy is so out of touch….reminds me of Monica Noel

  2. Posted by guest | December 24, 2008 at 9:43 AM

    The Terrence Howard album was grown and sexy(Pause) but riding with Jamie on this one.

  3. Posted by guest | December 24, 2008 at 9:49 AM

    Sadly, it appears Mr. de la Villehuchet decided to wait to fight for his client’s monies. It seems he decided to beat Bernie to hell and to fight him in the afterlife……..

  4. Posted by guest | December 24, 2008 at 9:56 AM

    Why doesn’t Chris Cox follow the French guy out the door.

  5. Posted by guest | December 24, 2008 at 9:58 AM

    @3 Maybe he will come back as de la Villehuchet le Blanc.

  6. Posted by guest | December 24, 2008 at 10:03 AM

    Is Gary Busey managing money now?

  7. Posted by guest | December 24, 2008 at 10:04 AM

    @6- he’s worked at SAC for several months now.

  8. Posted by guest | December 24, 2008 at 10:06 AM

    Bess please start a poll for Gary Busey as Head of the SEC………

  9. Posted by guest | December 24, 2008 at 10:27 AM

    “or the urge to reach out and touch you moves us.”
    Oh, there may be some comments on that statement.
    Happy Holidays from
    Wideclops, AD, and the Shamwow guy.

  10. Posted by Clown Capital | December 24, 2008 at 10:30 AM

    I’ve got a win/win for everyone. Ready for it??? Check this out,
    Madoff scheme = very bad. But,
    Madoff scheme = movie deal = gross revenue in the neighborhood of 20 billion (plus or minus some fraud)
    +
    Madoff book deal = 20 billion (plus or minus some fraud)
    + prisonside tickets to Bernie’s execution = 10 billion (plus or minus TARP funds deducted)
    =
    roughly 50 billion in total. Win/Win for everyone.

  11. Posted by guest | December 24, 2008 at 10:53 AM

    so in this enviornment, does just having a job in front office finance = the new “killing it?”

  12. Posted by guest | December 24, 2008 at 11:03 AM
  13. Posted by guest | December 24, 2008 at 11:05 AM

    11 Could be. Clearly a significant downsizing has occured, both in terms of people and compensation, in recognition that the industry is just not generating the revenues to support what was going on in the recent past.

  14. Posted by guest | December 24, 2008 at 11:05 AM

    the new “killing it” is not having to off yourself because you lost all your and your friend’s money

  15. Posted by Cantillon | December 24, 2008 at 11:14 AM

    Nice of Cox to admit banning short selling for financials was a horrible idea.
    Nice to reveal he was getting pressure from the Balds.
    Not good–basically admitting he had no balls. Way to stick to your principles Coxy.
    Oh and Leavitt, STFU you fucking hypocrite.
    Markets Clear, peace.

  16. Posted by guest | December 24, 2008 at 11:17 AM

    what time does the market close today?
    -Bored Goldman Sachs Secretary; bonus: $65,000

  17. Posted by guest | December 24, 2008 at 11:18 AM

    Bess – how about a poll on when Bernie jumps from his penthouse to the street below…..

  18. Posted by guest | December 24, 2008 at 11:18 AM

    1pm.

  19. Posted by guest | December 24, 2008 at 11:20 AM

    Word is that these girls will be next seen at the FGG “Turn Back The Clock To 2003″ client party:
    http://perezhilton.com/2008-12-24-spreading-the-holiday-cheer-2

  20. Posted by guest | December 24, 2008 at 11:23 AM

    How much did a GS secretary make in total compensation in 2007? 2008?

  21. Posted by guest | December 24, 2008 at 11:24 AM
  22. Posted by Lowly Assistant | December 24, 2008 at 11:26 AM

    Wait, so we’re supposed to be productive today with little to no dealbreaker? Fuck that.

  23. Posted by guest | December 24, 2008 at 11:34 AM

    Cox you can suck my Cox.
    Cox: an a$$hole with no balls. Could have
    been rid of Goldman because of this gutless fool.
    These GS fools will be out of govt office soon enough. I’m sure they’ll enjoy the weekend getaway to Mustique using the Gulfstream. Unfortunately for them Mrs Noel won’t be there to suck their collective Cox.

  24. Posted by Anal_yst | December 24, 2008 at 11:42 AM

    @ Lowly
    Agreed.
    F-me, ughh.

  25. Posted by guest | December 24, 2008 at 11:47 AM

    Could Cox be any more delusional?

  26. Posted by guest | December 24, 2008 at 11:58 AM

    too much sushi – mad hatters disease

  27. Posted by guest | December 24, 2008 at 11:59 AM

    That Gettinger geezer is from Scrasdale
    I knew his sons Scott & Milton.
    The dad had a huge mid-century house with pool and hot sweedish 2nd wife 25 yrs younger…..
    Wow $10M gone…and $3M trust fund too
    This is hitting close to home

  28. Posted by guest | December 24, 2008 at 12:02 PM

    @20
    A greased pole

  29. Posted by guest | December 24, 2008 at 12:07 PM

    Who under the age of 80 is named Milton?

  30. Posted by Lowly Assistant | December 24, 2008 at 12:13 PM

    Anal_yst,
    For this reason, I hate the holidays (particularly, because I always seem to be one of the only retards working a desk, twiddling my thumbs). I thought Bess was an atheist. This is unacceptable.

  31. Posted by guest | December 24, 2008 at 12:16 PM

    Right now on CNBC – ‘Everyone is wondering whether the Russians are also invested in Madoff because they do not take these things too well and will not wait for all the legal stuff to run through”
    “Yeah, thats why they have marshalls watching madoff 24 hours”
    Wow! So they bascially just went on air and call Russians bloddthirsty mafia thugs. Not going into the merits of that argument but still, a major channel saying that on air?

  32. Posted by guest | December 24, 2008 at 12:20 PM

    @31 major network? I thought you said it was CNBC?
    Seriously, who aside from real traders, day traders, and retirees watches CNBC?
    And who cares about their witless banter – all I really want is the financial news and a little business gossip.
    Oh, except Charlie. I love Charlie – old school Wall St charm.

  33. Posted by guest | December 24, 2008 at 12:20 PM

    here are some lawyer ads to put a smile on your face and remind us all what we have become.
    http://endofesq.com/?p=758

  34. Posted by guest | December 24, 2008 at 12:20 PM

    @31
    Russians, Columbians, Minoans, …
    H’mm maybe Made-Off wasn’t that smart after all? Could it be that he has an ace up his sleve? maybe has no need for federal marshalls?

  35. Posted by Anal_yst | December 24, 2008 at 12:32 PM

    @34
    Was that a “Smokin’ Aces” reference?
    @ Lowly
    Love it that all my friends in basically everything but Finance have the better part of December off, at least this week.
    Why the F’ did we get into this field again?

  36. Posted by guest | December 24, 2008 at 12:33 PM

    “He will wear a columbian necktie….”
    Translation for white-bread/wonder kiddies whw were wee tikes in 80s:
    Columbians slit your throat and then pull your tongue thru slit so you look like miami-vice/don johnson with pink thin tie….

  37. Posted by guest | December 24, 2008 at 12:52 PM

    @Anal_yst
    >> Was that a “Smokin’ Aces” reference?
    Nope, all me. Probably a case of art immitating life.

  38. Posted by guest | December 24, 2008 at 1:03 PM

    I would love to see the entire Madoff clan popped by the russia mafia, would save a ton in legal costs for the US to prosecute.

  39. Posted by guest | December 24, 2008 at 1:06 PM

    can i go home now?

  40. Posted by guest | December 24, 2008 at 1:10 PM

    @39 no. we must all continue alt+tabbing for at least 3 more hours.

  41. Posted by guest | December 24, 2008 at 1:35 PM

    Noel family pile-on continues:
    http://www.nypost.com/seven/12242008/gossip/pagesix/beauties_hit_with_madoff_mud_145687.htm
    … In Brazil, they were known as the Aspirina Sisters because they gave the Brazilian girls headaches by always stealing their boyfriends, … Lisina, then in her teens, dated the son of a Neapolitan mafioso, “and would show up all the time in a white mink coat … four of the five sisters allegedly slept with the same handsome stud … Toub was nothing more than a party promoter in the ’90s before he married into the Noel family business … [Busson] was an actor who was in 1988′s “Sweet Lies,” starring Joanna Pacula.

  42. Posted by Anal_yst | December 24, 2008 at 1:49 PM

    @40
    I’m not sure what’s worse, being bored to tears stuck on the desk, or, like me, being swamped and wanting to slam my head against said desk.
    Rock…hard place.

  43. Posted by guest | December 24, 2008 at 1:54 PM

    i work in sales, my clients are all home..why am at my desk? its’not like there is a promotion on cross currency swaps….buy 1, get 2 on a large variety of currency pairs…!

  44. Posted by guest | December 24, 2008 at 1:59 PM

    hey sales guy,
    what time you are boys finishing up? i’d like to get home before christmas day.
    -your back office

  45. Posted by guest | December 24, 2008 at 2:08 PM

    “jesus wants you for a sunbeam”
    best comment on the Madoff piece.

  46. Posted by guest | December 24, 2008 at 2:08 PM

    “jesus wants you for a sunbeam”
    best comment on the Madoff piece.

  47. Posted by guest | December 24, 2008 at 2:17 PM

    who’s going to sign manny?

  48. Posted by mrpink | December 24, 2008 at 2:26 PM

    Merry Christmas dealbreaker clan..
    Why am I still at my desk? Oh! Yes. Back to doing my ‘self-performance appraisal’. Yes, like that’s really going to help my bonus number.
    *JO&C time in 15 mins*
    -mrp

  49. Posted by guest | December 24, 2008 at 2:47 PM

    Is the Media Blind?
    These bimbos are far from Gorgeous….Leno chins and five-head foreheads….
    Heidi Klum is gorgeous; these chix are nonsense
    Toubs real first name is Jamshid….not very swiss sounding from here
    His dad Said ix on wiki as being in the Robert VEsco scandal of the 70s….another billion $ mutual fund scheme where some NJ dude took over the Investor Overseas Services $ 2 Billion Fund…they never caught him, last seen in Havana

  50. Posted by guest | December 24, 2008 at 2:53 PM

    41 – how much did their PR firm pay to have the girls referred to as beautiful?

  51. Posted by Rahodeb | December 24, 2008 at 3:02 PM

    Hey everyone, check out WFMI, it’s a steal at $9!
    Merry xmas.

  52. Posted by guest | December 24, 2008 at 3:04 PM

    I’d do the one on the right. The other 4 maybe not. I will admit that I have a bag of carrots and sugar cubes in the car. Could even stretch to a salt lick.

  53. Posted by guest | December 24, 2008 at 3:07 PM

    “Where have all the cowboys gone?” acquires deeper meaning with the Noel daughters.

  54. Posted by Anal_yst | December 24, 2008 at 3:12 PM

    Jesus, the Noels are really too ridiculous for this to not be some sort of brilliantly-executed reality show experiment ala Truman Show, or maybe from Mark Burnett or something.

  55. Posted by guest | December 24, 2008 at 3:13 PM

    When did Busey get an artificial leg?

  56. Posted by guest | December 24, 2008 at 3:27 PM

    I’d give almost anything to ba a fly on the wall at Noel’s during tomorrows festivities. I’d stretch to Made-Offs left testicle…

  57. Posted by guest | December 24, 2008 at 3:33 PM

    @Anal_yst
    Noel’s take after S.R.Hadden in Contact. The ending leaves you with the same nasty taste in the mouth…
    They have the means and the will.

  58. Posted by Finnegan | December 24, 2008 at 8:40 PM

    I really think DB staff should come into work all week so I don’t get bored on my two weeks off.
    Unrelated, I think our most exciting news in 2009 will be a general implosion of Russia’s economic framework as they succomb to petro reality. Wonder how many people have portfolios, trading strategies or direct investments that depend on a healthy and functioning Russia. The merriweather of the past is long gone.

  59. Posted by guest | December 26, 2008 at 10:57 AM

    @55, that’s probably his catheter bag

  60. Posted by NotNasser | December 26, 2008 at 9:14 PM

    But in publicly acknowledging for the first time that this ban was not productive, Cox said he had been under intense pressure from Treasury Secretary Henry M. Paulson Jr. and Fed Chairman Ben S. Bernanke to take this action and did so reluctantly. They “were of the view that if we did not act and act at that instant, these financial institutions could fail as a result and there would be nothing left to save,” Cox said.”