Thursday, February 26, 2009

Damn It Feels Good To Catch A Banker

I recently finished this book with cleverly titled chapters such as
"It's all about the bonuses, baby"
"Geogetown? I wouldn't let my maids' kids go there"
"This is how we do it on Broad & Wall, Bitch!"
It is a very amusing parody of the culture of Wall Street, from investment banking to private equity to hedge funds. But like in any parody, there is a kernel of truth, especially when it comes to the arrogance required to be successful.
And a step away from this kind of arrogance is the hubris that leads to this.

Money managers accused of $550 million fraud

NEW YORK (Reuters) – Two money managers who oversaw investments for Carnegie Mellon University and other institutions were arrested on Wednesday on charges of running an estimated $550 million, decade-long swindle, the latest in a wave of big financial fraud cases.

The pair, both former part-owners of the New York Islanders National Hockey League team, are accused of using client money as "their personal piggy-bank" to fund lavish lifestyles, according to the U.S. Securities and Exchange Commission.

Authorities contend the scheme began in 1996 and operated through this month. Of the $667 million that clients invested, Greenwood and Walsh misused as much as $554 million, the SEC said.
Greenwood, of North Salem, New York, was accused of using investor funds to buy items including horses and expensive collectibles, while Walsh, of Sands Point, New York, was accused of using client money for himself and to make large payments to his ex-wife.

Hubris indeed. Madoff was only the many more of these guys are going to get caught?
Digg this

No comments:

Add to Technorati Favorites