Is not that AMF is condemned to passivity

Bernie Madoff already entered the history books, but probably not in the chapter he had in his debut. This extraordinary case to all points of view there are still very many areas of shade. Explanations on the "case of the century" in the global alternative management.

How this case

could it happen

Bernard Madoff had all the guarantees of respectability to attract and reassure investors: experience, performance, reputation. Indeed, sure of him and his good star, he was even named his yacht the "Bull", Wall Street bull markets symbol... The former Chairman of Nasdaq was part of the highly respectable figures New York establishment. He had a large, prestigious and loyal clientele. What give confidence to new customers, coming also often home through word-of-mouth. He was one of the few managers who courted by all sides, could afford to give the least possible information about the strategy which was its success. In view of the magnitude of the fraud, many doubt that he did not receive many complicity. The lack of vigilance and clear-sightedness of the US stock market regulator, the Securities and Exchange Commission, is pointed the finger.

Is the amount of the definitive losses he known

Non. And for several reasons. Embarrassed, all clients have not announced officially their exposure to the U.S. Manager. This is the case of some wealthy private clients or sovereign wealth funds, fleeing this kind of advertising. France, Association of institutional investors (AF2I) has launched a consultation with its members to assess the means of redress that they are considering, but it is not asked their exposure, believing that each player is free to communicate individually on this issue. Valued at $ 50 billion by Madoff himself, this gaping hole is likely to evolve, because the statements of the latter must be taken with caution. Data compiled by Bloomberg agency assess today around $ 34 billion assets of clients. In addition, it is not known yet what was the strategy of the Fund, if he had one, what its actual loss, its assets and its products, how they are valued... New surprises cannot be excluded.

What means

have investors

to retrieve their money

Recover these assets will prove risky, time-consuming and expensive in fees of lawyers for all investors. Across the Atlantic, remedies, complexity, and the inextricable maquis of regulations open remote and uncertain prospects. Indeed, it is quite possible that happy clients who have withdrawn their money in time be brought to reverse all or part of these sums. This would encourage new litigation. In France, des marchés financiers (AMF) Authority is not competent to regulate the Luxembourg Madoff Fund marketed by France, and whose monitoring is the responsibility of the regulators of their country of origin. Is not that AMF is condemned to passivity. Jean-Pierre Jouyet, its new President, ensured yesterday that no small French investors would see its economies threatened by the Madoff fraud.

Could this case have

to take place in France

No country can declare itself completely immune against a scam by a talented, respected professional establishment and aware of the intricacies of finance. The Credit Lyonnais case showed that a large drift can occur even in an area regulated and monitored. It remains that the French management companies as such are subject to a series of controls (independent trustee, Board of Auditors, internal controller, the financial markets authority) which would complicate the task of potential fraudsters and would identify a priori. Tax havens are places much more discrete and practical to organize fraudulent activities.