David Weidner’s Writing on the Wall: Do Madoff victims expect too much?The Bernie Madoff spectacle, once compelling for illustrating the grandeur and scope of his fraud, is in danger of losing its relevance, says David Weidner.
Bill’s take on this: While Bernie Madoff belongs in jail getting whatever it is that other prisoners wish to dole out on him, he’s paying for his crime. The victims, on the other hand, need to be compensated for being defrauded. HOWEVER, their retribution should come only from Madoff and whatever assets and future income he and his estate receive. It should NOT come from the SIPC (which insures up to $500k). At the very most, 500k should be covered by, yes, us, the taxpayers; anything above that limit should be borne by the dumb shareholders who participated in a “too-good-to-be-true scam.”