WATCH: Madoff Whistleblower Testifies, WSJ Blew Chance To Break Story

***UPDATE 2:20PM***
The Wall Street Journal blew its chance to break open the Madoff ponzi scheme three years ago, according to whistleblower Harry Markopolos. Buried deep in his testimony to Congress earlier today, Markopolos said editors at the newspaper squashed attempts by reporter John Wilke to publish the story.
Says Gary Weiss:

A bombshell is buried in Harry Markopolos' prepared testimony to a House panel today: he contacted the Wall Street Journal on the Bernie Madoff fraud three years ago, and the newspaper did nothing.

It seems that the Journal missed an opportunity to achieve one of the biggest scoops ever, win a Pulitzer Prize and all that other good stuff--and extinguish the biggest fraud in financial history.

EARLIER: Harry Markopolos testifies before the House Financial subcommittee.

His warnings in 2000 to the Securities and Exchange Commission about Bernie Madoff went unheeded.

Watch:

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Comments

[whatt]

BUSH AND THE GOP, WRITTEN ALL OVER THIS, PROTECT THE RICH AT ALL COST.

[timewarp23]

I was shocked at the incompetence of Rep. Rubén Hinojosa's questions.
I had no idea who he was before I saw him in this hearing.
His questions showed a deep lack of understanding on the issue. I am shocked that he is on this committee. The citizens in his district should be very embarrassed.

[dav ram58]

Maddoff was serving the spiked Kool-aid and many were getting drunk. Who wanted to listen to this "buzz kill" Marcopolos?

[lunchlady]

Now why would WSJ ignore this story? Is Murdoch somehow involved wit Madoff or does he hate any criticism of saintly financiers and rich people? Maybe he thought investigating Madoff would have been socialist. Or the two men are buddies, show up at the same swell parties.

[flyingmonkey]

I don't think Murdoch owned the wsj three years ago.

[lunchlady]

Oh.... I thought he's owned it that long. But I'm too lazy to look it up. I haven't like the WSJ for years, and its gotten worse with Murdoch owning it.

[szlevi]

SO a corrupt, useless regulatory let a Ponzzi-scheme flourish for years and th4 corrupt, mouthpiece "newspaper" blocked his own reporter to write about it, both despite being evidence handed over to them on a silver plate...

...why am I hoping the end is near for all these disgusting parasites?

Wall Street Journo, the most rotten, worthless national piece of...

[Scoppertop]

Give Markopolos the Chairman job at the 'new' SEC.

And didn't an SEC whistleblower get thrown to his death from an office building window, several years ago? Of course, they probably called it a suicide.

[sueNaustin]

I remember not all that long ago that Jim Cramer of Mad Money was begging to be the head of the SEC, that he would do it for free!! It is easy to imagine Cramer tackling the job with diligent glee.

[Scoppertop]

Cramer... not a bad idea.

[Pharos]

Is this the same WSJ that is so concerned about the economy that it can examine the stimulus package and find every tiny little thing that is not perfect. They couldn't, however, see a $50 billion Ponzi scheme when the evidence is handed to them on a silver platter. Why do they have any credibility left?

[voltage356]

I guess Bloomberg news would've kill the story also since Bloomberg and Madoff go way back.

[schatsie]

18 thousand Business Reporters doing WHAT?

[msjimmied]

And he should have been at the inauguration and the super bowl too! the Hero's tour...we should have that as a given. Too bad this came now.

[msjimmied]

I love his outrage! He was not mincing words, and he wasn't all crisp and expensively tailored, love it!!! Just a real ticked off citizen. That's what I want on the SEC, not the darn suits with "executive privilege". Angry people are great for change...abrasive, uncompromising, a fire that burns brightly. He will learn the ropes as to organization and other administrative stuff with time, but the spirit you can't just buy. With the faith of the country behind him, he will not let us down, this is not the kind of guy who will take this lightly. This is not just a job with him. He gets my vote.

[szlevi]

FULLY AGREED!

[goldsteiner]

absolutely!

[Trucker777]

Who owns the WSJ?

Who owns FOX networks?

Who owns NewsCorp?

Put it all together and its the robber barons protecting each other.

[MsRy]

Yep. The Journal didn't "miss" the story, they buried it to protect their subscribers, ie the top 5%.

[Trucker777]

Where does Rupert Murdoch and family fit in all this mess?

25 most powerful people in business.

http://money.cnn.com/galleries/2007/fortune/0711/gallery.power_25.fortune/2.html

[Trucker777]

Who owns the WSF?

Who owns FOX networks?

Who owns NewsCorp?

Put it all together and its the robber barons protecting each other.

[readmewell22]

I say give the man a medal! Send the crook to a corner of a small cell for a long time.
Divide up the $50 BILL among those individuals who have lost their jobs, that will help Stimulate the Economy, and teach other Ponzi Pukes, not try this stuff in the future.

[readmewell22]

He deserves a medal, and Madoff deserves a small cell for a long, long time!