So, Bernie got himself into a bit of trouble...why Madoff's Latin American clients are staying silent.

From the Wall Street Journal:

Wealthy Latin Americans appear to be among the big losers in the $50 billion Ponzi scheme orchestrated by financier Bernard Madoff, although many in the region are reluctant to step forward due to the private nature of Latin American fortunes, worries about security, and concerns about tipping off local tax authorities.

I'm a bit torn about what I think about this. On the one hand, in a world region where kidnapping is a form of income and often go so badly, sure, the wealthy don't want their names in papers... a who's who list of who to kidnap (although, post-Madoff, ransom dough might be scarcer). On the other, since when do Latin America's wealthy keep a low profile? Keep in mind that this is the region in the world with the largest disparity between rich and poor. These are people who ride around in luxury cars and get their photographs taken in the society papers.

My guess is that the strange silence (not one single Brazilian investor has come forward--this in Latin America's most robust economy) comes from not wanting local governments to look too closely at shady finance maneuvers (underreporting wealth to avoid paying taxes) and, possibly, the even shadier origins of some of these fortunes in the first place... akin to reporting the theft of a car that you've stolen.

Continue reading "Latins Quiet About Madoff Losses."



Posted in . Bookmark the permalink. RSS feed for this post.

One Response to So, Bernie got himself into a bit of trouble...why Madoff's Latin American clients are staying silent.

nblinks said...

Do you think there might also be a shame factor—not only for having lost money, but having done so in a pyramid scheme? I recall reading about a fraud along those lines in Colombia this year—my impression was that the people who lost their money were generally lower- and middle-class.

Search

Swedish Greys - a WordPress theme from Nordic Themepark. Converted by LiteThemes.com.