Bernie Madoff has died in Federal Prison at 82 years old — Transcript

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1. 0:06all right welcome back to yahoo finance
2. 0:08live on this wednesday morning some
3. 0:10breaking news
4. 0:10just crossing the wire the associated
5. 0:12press reporting that bernie madoff has
6. 0:14died in
7. 0:15federal prison made off of course famous
8. 0:18for the ponzi scheme he carried out over
9. 0:20many years leading into the 2008
10. 0:23financial crisis yahoo finances adam
11. 0:25shapiro joins us now
12. 0:26and adam you spoke to mr madoff many
13. 0:29times through
14. 0:30the years um and i guess as we think now
15. 0:32about the
16. 0:33totality of madoff's legacy um on
17. 0:36financial markets uh on the wealth
18. 0:38management
19. 0:39business you know how are you kind of
20. 0:40thinking about this news in the initial
21. 0:42aftermath of this breaking
22. 0:44story well a lot of people have been
23. 0:46waiting for bernie madoff to die for a
24. 0:48long time he had uh
25. 0:49i think it was stage four kidney disease
26. 0:52said been expected but when you talk
27. 0:53about the madoff ponzi scheme remember
28. 0:55this was huge
29. 0:56had the the investment returns been
30. 0:59legitimate
31. 1:00this would have been a 65 billion dollar
32. 1:03enterprise but in fact what he had done
33. 1:05it was a ponzi scheme
34. 1:07you should know that irving picard who
35. 1:09is the bankruptcy court
36. 1:11trustee has actually been able to
37. 1:13recover
38. 1:14close to 19 billion dollars on behalf of
39. 1:18the thousands upon thousands of people
40. 1:20that bernie madoff was able to scam now
41. 1:23they've also denied several claims
42. 1:24because there are people who are
43. 1:26referred to
44. 1:26as winners because they took money out
45. 1:29greater than the amounts that they put
46. 1:30in but they've received more than 16 000
47. 1:32claims but when you talk about bernie
48. 1:34madoff and the scope of what he did
49. 1:36miles
50. 1:37i interviewed him at federal prison in
51. 1:40butler north carolina back in 2013
52. 1:42face-to-face
53. 1:44he insists that only four thousand
54. 1:47people were harmed by what he did the
55. 1:49problem with that is those were direct
56. 1:51investors
57. 1:52into the made madoff firm there were
58. 1:54thousands upon thousands of people
59. 1:56who invested via companies like
60. 2:00fairfield greenwich
61. 2:01which were funneling money to mr madoff
62. 2:04unaware that they were being invested in
63. 2:06made off
64. 2:07kinds of what we now know to be a ponzi
65. 2:09scheme just about everybody surrounding
66. 2:10mr madoff has died or gone to prison
67. 2:13his right-hand man he actually died
68. 2:16about three years ago madoff's two sons
69. 2:19one committed suicide
70. 2:20the other died from cancer i mean this
71. 2:22is a tragedy on the scale of a greek
72. 2:24tragedy
73. 2:24in so many ways but the bankruptcy court
74. 2:27trustee continues that office picard's
75. 2:29office
76. 2:29continues to claw back money from people
77. 2:32who took
78. 2:33more out of the madoff ponzi scheme than
79. 2:35they put in
80. 2:36and at that interview with him uh miles
81. 2:38i remember my impression was he's just
82. 2:40like your grandfather he's he was kind
83. 2:42he was calm
84. 2:43he insisted that the 4 000 people he had
85. 2:45harmed had been made whole that was not
86. 2:47true
87. 2:48but he insisted they had made been made
88. 2:50whole the one thing he pointed out
89. 2:52is that very large banks like jp morgan
90. 2:54chase
91. 2:55he said they knew what he was doing
92. 2:58remember they had been his bank for 20
93. 3:00plus years and in fact
94. 3:01there are court documents that were
95. 3:03never allowed to go to trial that irving
96. 3:05picard had filed
97. 3:06in which they showed emails in which
98. 3:08people at jpmorgan chase
99. 3:10raised the flag the red flag that madoff
100. 3:12was running a ponzi scheme
101. 3:14at the very time chase was getting ready
102. 3:16to offer investment
103. 3:18vehicles and made off to its clients
104. 3:20they did not pull the plug on that
105. 3:22they just cut the amount of the
106. 3:23investment they were going to offer to
107. 3:24clients from one billion
108. 3:26to i think it was a quarter million
109. 3:27dollars so there's a lot to be said
110. 3:30about whether jp morgan chase actually
111. 3:31knew
112. 3:32remember to they paid a fine jpmorgan
113. 3:34chase
114. 3:35of more than three billion dollars but
115. 3:38neither admitted or denied
116. 3:39knowing anything about it you tell me
117. 3:41who pays three billion dollars
118. 3:43when you neither admit nor deny you know
119. 3:45something about something going on three
120. 3:46billion
121. 3:47madoff is dead 82 years old and a lot of
122. 3:50people probably breathing a sigh of
123. 3:51relief
124. 3:51people he harmed miles yeah and and adam
125. 3:54you know just finally before we let you
126. 3:56go and you
127. 3:56kind of talked about a little bit in in
128. 3:58your interaction with him but
129. 4:00you know do you think he really
130. 4:01understood um
131. 4:03what he had done i mean it sounds kind
132. 4:05of the way that that
133. 4:06you know madoff is pitching it to you
134. 4:08years later while he's sitting in prison
135. 4:10he's insisting
136. 4:11to a member of the media that everyone
137. 4:13was made whole it seems that he just
138. 4:15never fully grasped the magnitude of the
139. 4:18scam that he had pulled off um how how
140. 4:21did you kind of keep
141. 4:22it he knew exactly what he was doing he
142. 4:24was a liar
143. 4:25he was a cheat his brother helped him uh
144. 4:28his brother served 10 years in federal
145. 4:30prison for it
146. 4:31he knew exactly what he was doing and
147. 4:33there were five
148. 4:34money folk around him who as far back as
149. 4:371987
150. 4:38were helping him finance the beginning
151. 4:40of the ponzi scheme
152. 4:41and they were getting returns remember
153. 4:43they they were allowed to dictate how
154. 4:45much of return they would get
155. 4:47one of those gentlemen was found dead at
156. 4:48the bottom of his swimming pool
157. 4:50and that was ruled because of a heart
158. 4:52attack um i think only one may still be
159. 4:54alive carl shapiro may still be alive
160. 4:56he was in his 90s when this all blew up
161. 4:58so no good comes to anybody who was in
162. 5:00the orbit
163. 5:01of bernie madoff all right yeah who find
164. 5:04it says adam shapiro
165. 5:06uh with an update on that breaking news
166. 5:08for us again bernie madoff
167. 5:09dead at 82 in federal prison