The story of Brewster’s millions has been adapted many times from the original 1902 novel. Perhaps the best known is the film version starring Richard Pryor and John Candy. The story is a simple one: in order to inherit $300 million Pryor must first lose $30 million in 30 days. If only he had known about Bernie Madoff, the King Midas in reverse of New York’s Upper East Side. $30 million would have been a mere bagatelle to Bernie, who seems to have burnt his way through a staggering $65 billion.
At first blush this tawdry tale of fraud and malfeasance tells us nothing about the mainstream world of asset management. However, Madoff’s promise of respectable, though not spectacular, returns with little volatility is just what many investors crave. Anyone who has worked in finance for more than five minutes will have seen a presentation for...
