Tuesday, December 23, 2008

de la villehuchet

Well I hadn't really paid much attention to this whole scandal story, but one of the guys who lost 1.4 billion dollars on the scandal committed suicide.

Thierry de la Villehuchet was a 65 year old who started a successful hedge fund company on Wall St, but apparently a lot of his assets were built up in the madoff fraud.

From what I gather it was a remarkable fraud. Even more remarkable was how it went undetected. He basically set up his own stock market, with all made up profits. When an investor wanted to pull their money out, he would pay them with money from a new investor. So if everyone wanted to pull their cash out, he would be in a bind.

It sounds like a standard bank to me, so I guess he big deal is over his false profits he posted. Nevertheless, remarkable.

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