New York’s Museum of Jewish Heritage recently cut its staff by 12 percent as it projects smaller donations following the worst year for U.S. stocks since 1931.
In the wake of the arrest of Bernard Madoff in what’s being called the biggest scandal in philanthropic history, museum Deputy Director Ivy Barsky expects more pain.
“It’s devastating, even for those of us who aren’t directly affected,” she said.
Back home, they talk about nothing else…
[url=http://www.palmbeachdailynews.com/search/content/news/2008/12/16/fakemadoff.html]Some more coverage of this mess from the South Florida vantage point is here[/url].
The “Shiny Sheet’s” coverage of this has been very interesting. In the middle of this mess, its publisher managed to unearth this piece on [url=http://www.nysocialdiary.com/node/140335]Jewish society in old Palm Beach[/url]. It contained something I was unaware of: that, before it was built in the early 1960’s, members of the Temple Emanu-El synagogue worshipped at [url=http://www.vulcanhammer.org/anglican/bethesda]Bethesda-by-the-Sea Episcopal Church[/url].
Joan E. Lappin, president of Gramercy Capital Management in New York writes in Forbes (“[url=http://www.forbes.com/financialadvisernetwork/2008/12/17/madoff-ponzi-vader-fan-ii-in_jl_1217soapbox_inl.html]How To Start A Ponzi Scheme[/url]”):
[blockquote]Wrap yourself in your religion. Religion is a great thing to embrace while scamming people. It puts a halo over your head and underscores your integrity to everyone who watches you. Bernie Madoff definitely worked the Jewish enclaves into which he had ingratiated himself. The largest clusters of his victims surround his Jewish community in Long Island, Jewish charities in various parts of the country and the Palm Beach Country Club, which was started years ago by a group of Jews who weren’t welcome in another local club.
Madoff gave large amounts of money to Jewish causes, and he made sure everyone knew about his giving. He was always out on the social circuit at important events in the Jewish community. Because he had this aura of integrity, people were shocked last week to learn that he had evaporated their money.
It is hard to understand what made this man who had been a prominent leader in the stock trading community flip out and become Darth Vader. But to me, the most unconscionable thing he did was take 100% of the money of older retirees he suckered who are now left penniless. He could have taken half. He could have limited what he would allow them to place with his firm. But he took it all, knowing that these people in their 70s, 80s and 90s would be destroyed and left penniless.
No amount of religion or praying for forgiveness on Yom Kippur will ever repair that. [/blockquote]
Having been a treasurer of a 501c3 and served on the board of two others as well, I do not understand how the directors of these charities could have justified this type of an investment vehicle.