The wire services just reported that Bernie Madoff has implicated J.P. Morgan Chase in a lawsuit recently filed in federal court in New York by the Steamfitters Local 449 Pension Fund and the Central Laborers’ Pension Fund.
Plaintiffs attorney David Rosenfeld met with Madoff, who suggested that top officials of J.P. Morgan suspected the fraud that Madoff himself so famously committed. Over the past year, J.P. Morgan has made a habit of “mea culpas” to the tune of tens of billions of dollars, and there seems to be no end in sight for this mega-institution. Only a month ago, J.P. Morgan coughed up more than $2.5 billion to settle Madoff-related claims, but the lawsuits keep coming.
Based on its past behavior, it is possible that the new allegations against J.P. Morgan are true, but Rosenfeld had better not rely on Bernie Madoff to prove his case. When Rosenfeld was asked if Madoff can be trusted, his response was mystifying: “I think he can. He certainly sounded credible to us, and there is no reason for him to lie at this point. He is remorseful, and he does feel compelled now to do what he can to help his victims. The things he said are also easily verifiable.”
Mr. Rosenfeld, give me a break! Madoff wouldn’t know the truth if it landed on his head. He is a pathological liar. You ask why he would lie now. He would lie now for the reason he always lied—it’s an essential part of his nature. Madoff is an elderly man rotting away in prison. Accustomed once to being important, he will lie effortlessly to be relevant again. If what he said is “easily verifiable,” you had better start verifying.
And for his being remorseful and feeling compelled to help his victims, he apparently has you fooled just as he fooled thousands of investors over the decades. This man has no remorse. I was at his sentencing when he talked about what a great trader he had been. He is an egomaniacal sociopath. Had he any remorse, he would have implicated those who conspired with him to commit the greatest Ponzi scheme in history. He conned too many of us for too long. Spare us your belief in his good intentions.