From Bruce Carton at Compliance Week: Notes from Today’s Senate Banking Committee Madoff Hearing.
Interesting excerpts:
Thomsen–Ponzis hard to detect because nobody complains until money stops flowing out. Hard to detect before it stops.
Harbeck–Experts say Lehman Bros. and Madoff are cases that should occur every 5,000 years and they occurred in a one year period.
Thomsen–we have huge amounts of information. Need to find best ways to mine it.
Thomsen says SEC gets 100,000 unsolicited tips/complaints per year.
Prof. Coffee say no mutual fund has ever failed because of a Ponzi scheme because an independent custodian holds funds.
A link to Hearing testimony is here.