Last night, Madoff aired on network TV. The amazing aspect of the saga remains his aversion to trading his way out of the mess. I remember getting a tour around the massive Peak 6 facility while the story was unfolding. The Managing Director said that they were roughly 50% of the CBOE volume and Peak 6 had never traded with Madoff.
In an interview yesterday morning, Harry Markopolos, the man identified as exposing Madoff, said this:
"I'm looking at about 5 funds right now that are also Ponzi Schemes. 1 is bigger than Madoff."
The truth is Mr. Market exposed Bernie Madoff, not the geekily- portrayed Markopolos. Mr. Market has kicked off the year with a nice drop and some currency volatility, his version of a Ponzi investigation. We should be hearing the names of the fine institutions Mr. Markopolos is looking at this Spring.
Nice work boys.