My posts this week revealing supposed excerpts from Bernie Madoff’s book proposal (see list below) have evidently struck a nerve among the “money manager” community.
For example, one of this ilk sent me a note a couple of days ago:
Not funny and actually offensive. I feel sorry for you. Insulting people won’t bring you any friends.
And this comment (which from the reference to “clients” I assume it’s from another money manager) came in from Florida:
I have clients in Palm Beach, Florida. It is much too soon for humor making fun of the criminal who has ruined so many peoples’ lives. (if it will ever be appropriate) Thumbs down on this post.
I have some comments about such criticism, needless to say.
I’m not at all surprised that money managers are offended, considering they’re largely to blame for the debacle.
Look, I can understand if Joe Investor can’t figure out if an investment is bogus. But it’s because of a realization of his own ignorance that Joe Investor hires a money manager in the first place.
It’s the job of the money manager to figure out whether an investment makes sense, and whether or not its fraudulent.
A competent money manager should have been able to figure out, based upon the available data, that Madoff’s scheme was bogus.
On the other hand, if there wasn’t enough information to figure out exactly what Madoff was doing, then a competent money manager would have advised against investing, simply because Madoff’s model was too opaque for proper due diligence.
These money managers were paid to be trusted advisers - experts who were supposed to be difficult to fool.
Instead, they swallowed Madoff’s BS hook, line and stinker. So excuse me if I’m not sympathetic.
Frankly, the money managers who counseled investing in Madoff were lazy S.O.B.s who were milking connections to get commissions, without really doing their job.
Any sales professional who poses as a trusted advisor (which is exactly what a money manager does) has an obligation to actually be trustworthy, and do some real work (as in real research) for their clients.
In general, I’m 100 percent on the side of the sales professionals, but I consider these money manager guys nearly as culpable as Madoff.
These money managers were being paid, in part, to smoke out fraud. They failed. Miserably.
The way I see it, if investors can’t get their money back from Madoff, then the money managers should do what they can to make it good….down to their last cent.
Anyway, here are the posts that the money managers find so offensive:
The Bernie Madoff Book Proposal
