White House: Madoff Verdict Was Meant To Send A Message

The White House weighed in on the sentencing of Bernie Madoff on Monday, saying the hefty 150-years behind bars for the convicted Ponzi scheme artist was meant to serve as a warning to future swindlers and careless investors.

"I saw obviously that the judge wanted to send a very strong signal to anybody that invests money on behalf of others, of the amazing responsibility that they have to their investors and to the country and he used this sentence to send a message," said Press Secretary Robert Gibbs. "My guess is that that message will be heard loud and clear going forward."

The White House's line was a reflection -- as Gibbs noted -- of the remarks by Judge Denny Chin, who didn't pull any punches when handing down Madoff's punishment.

"Here the message must be sent that Mr. Madoff's crimes were extraordinarily evil and that this kind of manipulation of the system is not just a bloodless crime that takes place on paper, but one instead that takes a staggering toll," Chin said.

The 150-year sentence was the maximum allowed for the 71-year-old Madoff whose elaborate Ponzi scheme was believed to have cost his clients more than $50 billion.

On a separate, but related note, Gibbs was also asked for the White House reaction to the reported rise in executive compensation and bonuses at some of the firms that have received bailout funding, most notably Goldman Sachs.

In a disapproving tone, Gibbs stressed the administration's efforts to search for policy solutions to the problem rather than just talk about the president's personal disappointment in the news.

"Obviously we have appointed [an individual] to look into the compensation practices of banks and lending institutions that have received extraordinary assistance under the TARP program," Gibbs said. "His ability to review the salaries for the top 100 employees and sign off on that salary structure is in the process of beginning, the president and this administration are implementing wide-reaching, far-reaching executive pay reform and I think the president has outlined his views pretty clearly since the administration began."

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Comments

[research]

The message is, don't be sloppy!

If you banker and gamblers are going to commit fraud,

at least clock it in complex finical instruments like credit defualt swaps!

[petman2001]

Leave it to Obama to let others be the ones sending out the harsh messages. Where has he been? My advice to Obama: less news stories about your children's playset and your dog, and more press conferences dealing with the real issues. I realize you have only been in office for less than half a year, so I'm willing to be patient on SEEING results, but I don't see you out there campaigning for and rallying public support for the changes you claim you want. YOU ARE THE MESSENGER! GET BUSY!!

[VA Lady2008]

The headline says it all: the government cannot look after, look into, or prosecute every single case of misdeeds, much less criminal actions, even if it WANTED to, and for 8 long years, an entire class of criminals, including Bernie Madoff, figured they could get away with it.

Fast forward, past the 16 prior investigations that ignored Bernies criminality to today. The government STILL can't prosecute everyone, but it can make steps that will make potential Bernie Juniors think twice, to wit:

1. The actual possibility of investigation, indictment, trial and conviction. Apparently none of these existed and the Bernies of the world figured there'd be a neverending free ride.
2. The forfeiture of all illegally gained assets, INCLUDING those transferred to family and friends.
3. The certainty of investigation, possible indictment, trial and conviction of family, friends, associates and employees, along with the subsequent loss--upon conviction--of every ill gotten gain.
4. The continuing trumpeting of the CRIMINAL family name to the point where family members will be obliged to CHANGE their name to avoid the scorn and derision. Ruth Madoff can't even get her hair done: she's been told by pretty much everyone she ever patronized NOT to come back. Ever.

A few sharp examples (and Bernie Madoff is only the first) should do the trick, likely for decades.

[Lotto]

Everyone understands that the SEC is culpable in this case but where was the WSJ, NYTIMES Busines reporters, CNBC, NPR's Marketplace,, Forbes, and all the other "business " reporters? All of the reporting and no one could see this coming? Or were they just cheerleaders for a corrupt Wall Street practice?

[desktop]

Yes when a lot of people with money are fleeced out of that money it becomes the worst crime imaginable and a major story. If a lot of people with much less money suffer and die because it costs at least three times as much as all other countries for some health care, well that's just the market place at work and those people don't deserve to be a story. Madoff cheated well financed people and gets 150 years, the health care system cheats the not well financed people and the health care profiteers blame the victim. What a country, not.

[oldgeek1]

The message is he was and is a crook and should be in jail for at least 10 years.

The other message is people have a lynch mob mentality and the 150 year sentence is grounds for appeal for something different. This guy may now end up out of prison in 10 years on appeal because of cruel and unusual punishment.

Stack this up against Ken Lay or Michael Millken.

Smells like a set up to me. Feed the mob and lay the foundation for a much lighter sentence with parole .

Mob mentality and stupidity, no wonder so many people got robbed.

[Palemoon]

So when will the equally strong messages be sent to Wall Street which does exactly the same thing that Madoff was doing? Where is all of the prison time over Enron? Where is all of the prison time over Fannie and Freddie fleecing people out of their own homes? Where is the prison time for ponzi's like AIG and Merrill Lynch??

Most of all, where is the strong message being sent over all of the many crimes committed in the past 8 years? Where is the strong message (I'll fire them) about committing an act of treason by willfully revealing the name of a covert CIA agent?

I could go on and on, but it's pretty clear that Madoff is a patsy, while the real crooks roam free and stay in power.

[Billpoch]

I feel sorry for Bernie, I would ask the judge to reduce his sentence to 75 years. There is no reason to give him the maximum.

[Whinger]

It's a shame the high and mighty haven't got the guts to send a similar message to future Presidents to deter them from embarking on illegal wars and occupation on foreign soil.

[fodel]

Poor Bernie. .. i hope they'll give him credit for time already served.

[breakingpoint]

I wonder if he has a terminal disease?

He certainly safer in prison than on the street.

He was busted in September - where are all the trials for the other crooks on Wall Street?
And what about the SEC?

[LiarLiarIraqsOnFire]

White House: Madoff Verdict Was Meant To Send A Message
__________­__________­__________­__________­_______

And that message is - Never steal from the wealthy and famous like Steven Spielberg and Kevin Bacon.

[talkingdog]

(big bird singing)

Every year begins with a day,......­..........­every day begins with an hour,.....­..........­.....every hour begins with a minute,...­..........­..........­....it's what days have within it,.......­..........­.....

Let's all hold hands,............

Lets all learn to hug,,.............

(Big Bird) Prison can be real fun,...

[VegetableMan]

what it means is that madoff will die in prison, as he should.

it also means that, thanks to the beauty of judicial precedence, any wall street or financial world punks who think they can get away with the same thing in the future will suffer the same fate, as they should.

[northstar11]

just one thought on the perpetrators of the TARP HEIST

the boys were very clever --they bilked 700 or so billion but only took 350 billion from bush

they left 350 billion on the table for the next administration to appropriate.

once they gave out the balance they became part of the scheme and cannot now prosecute any one.

they gave the cash willingly. so how can they now say we bilked them

they bought themselves immunity by splitting the caper.