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December 22, 2008 | 12:23 pm

Being Bernie: A theory

Posted by Tom Teicholz

Last night at a dinner party, the talk was about Madoff, as I’m sure it is at Hannukah parties and Holiday get-togethers everywhere.

One attendee who had a long and storied career in finance told me that he knew Madoff and was shocked—“Madoff was a pillar,” he said, “He was head of Nasdaq!” But all those years of returns, didn’t that make you suspicious? I asked. “I never thought it was a Ponzi scheme,” he said, “What I thought was going on was that he was front-running…, that’s how I thought he got those returns” (“front running is a form of trading, which is illegal, and consists of making trades ahead of a large order, in order to get a better price and make a profit. In Madof’s case, since he controlled such large investments, he had the power to make make large trades and to know those large trades were about to happen).

Another guest, who works in the literary and difital world had a more charitable take on things: “Madoff did what he did, not because he wanted to do bad and defraud clients, but because he wanted to do good and couldn’t deliver and then fell behind…..”

And as he said it, a lightbulb of sorts went off in my head. Madoff liked being the guy who delivered 10% returns come hell or high water. Madoff liked being “Uncle Bernie,” the so-called “Jewish T-Bill.” Madoff like being the philanthropist who gave to Jewish charities, who helped people,. who made a difference.

And in order to maintain being Bernie Madoff, Madoff needed cash, Madoff needed new investors. Madoff built a giant Ponzi scheme. 

In the end Madoff was no different than Whitey Ford who cut his ball, and greased his hair to rub it on the ball, to insure that he could deliver the strikes he was famous for. Even Bernie Madoff could not support being Bernie Madoff.

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The Whitey Ford comparison sanitizes and trivializes the reprehensible actions of a man deeply involved in a criminal enterprise. Additionally, some people thought he was ‘insider trading’ but were OK with it because they stood to benefit from it.

Comment by LanceThruster on 12/22/08 at 1:09 pm

HEDGE FUND UNDERBELLIES WILL SURFACE AT MADOFF & Co. TRIALS

From New York to Geneva, corruption is rampant and complex on Wall Street, including the process of accumulation of this much cash..
- 
http://pacificgatepost.blogspot.com/2008/12/is-madoff-really-anomaly.html
- 
MADOFF AND HIS METHODS are not so unique.

Comment by James Raider on 12/22/08 at 5:35 pm

Whitey Ford and Bernie Madoff, give me a break!

Comment by robert arnold on 12/23/08 at 5:23 pm

I’m sure it’d be nice to consider such a theory to be true. But in essence Bernie Madoff, by his own account and behavior before and afterwards, demonstrated how he really did not believe in Jewish values, and most especially did not know G-d or even desire to know the Most High G-d and have a relationship with the G-d of the Jews.  If he had a true relationship with G-d then he would never have done such acts or desired to behave so badly. But then there are the investors in his scheme, where was their moral compass. As it states in your comments, some thought Mr. Madoff was practicing insider trading and they had no trouble with this concept.  Is this how Jews should view Tzadekah, that as long as they are giving funds to the “poor” it doesn’t matter if the funds are gained illegally?  What does it really mean Tzadekah? Is the righteousness ascribe to Tzadekah just a superficial righteousness?  Does G-d not really care about Tzadekah and it is now just a Jewish custom?  Is G-d really not G-d anymore?  Are there not different meritorious levels to Tzadekah that were overlooked by those who invested with Madoff that would have offered these investors an escape from his scheme had they practiced those more meritorious levels of Tzadekah? For example, the level, enabling the recipient to become self-reliant. Suppose instead of investing with Madoff one of these investors had created a company to solely employ the poor, provide jobs to the unskilled, or produce lower cost food products for the poor, where would those funds be now? Of course, none of that excuses Mr. Madoff and his behavior, but maybe this is all be for the good and the Jewish People as whole will grow from the experience and realize just how important a relationship with the G-d of the Jews really is and it is that relationship that one should trust in most and not ones fellow Jew, money, or anything else that one might put before their relationship with HaShem.  Maybe this whole incident will bring about a renewal of closeness between HaShem and his chosen people.  Maybe there is a silver lining to this whole matter and Jews will remember that G-d is still G-d and he is still with the children of Israel. Maybe this incident will be the stepping stone to Jews worldwide in truth taking their responsibilty as Chosen to heart more and truly implementing its meaning in full.  The responsibility to change the world, by living as a model community upheld by ethics, morals and the belief of one G-d. By being a “light unto the nations”

Comment by Carole VanForsman on 12/23/08 at 10:47 pm

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