Ruth Madoff May Not Keep Her $2.5M For Long

And returning even 60% of client funds will clear out trustee

(NEWSER) - MF Global’s problems might be even bigger than advertised—as in twice as big. James Giddens, the trustee overseeing the case, says the company now appears to be short $1.2 billion in client funds—or twice the roughly $600 million previously believed, the Wall Street Journal reports. What’s more, Giddens says that even hitting the goal of paying customers back 60% of their money would cost up to $1.6 billion, or “virtually all of the assets under the trustee’s control.” More»

Eight employees got disciplined, however

(NEWSER) - SEC staffers managed to miss Bernie Madoff's Ponzi scheme for more than a decade despite numerous warnings, but that is apparently not a fireable offense. The agency disciplined eight employees involved in the case, with the most severe punishment being a 30-day suspension coupled with a demotion, reports the Washington Post . The others got a range of lesser penalties, including pay cuts and, in one case, only a "counseling memo." More»

Ruth, Andrew open up to '60 Minutes'

(NEWSER) - Almost three years ago, Bernie Madoff turned to his wife and said, “I have a confession to make: I’ve been running a Ponzi scheme,” Ruth Madoff recalled on 60 Minutes last night. Son Andrew remembers his mother’s response: “What’s a Ponzi scheme?” Once she realized what was going on, however, Ruth says she was “paralyzed” and remembers little more of what her husband said. Brother Mark, who later committed suicide, “stormed out of the room,” Andrew says; even so, Bernie then went back to his office and, later that night, brought his wife to a company holiday party. The next morning, the FBI took him away. More»

Imperial Bernie created misery all around him

(NEWSER) - A new book about Bernie Madoff's family is hitting bookstores tomorrow and depicting a miserable, greedy, vain clan of epic proportions. Here are highlights from the New York Post 's rundown of Truth and Consequences, by Laurie Sandell with cooperation from Ruth Madoff and her son Andrew:

• Bernie. A neat freak who dominated Ruth, he fooled around on her for 16 years and sexually harassed the wives and girlfriends of both his sons. With one sitting close enough to hear, he complimented her body but remarked that "she could have been heavier on top."

She says she and Bernie tried to kill themselves after story broke

(NEWSER) - Ruth Madoff makes a jarring admission to 60 Minutes, saying she and husband Bernie attempted suicide with pills after his Ponzi scheme unraveled, reports CBS News . "I don't know whose idea it was, but we decided to kill ourselves because it was so horrendous what was happening," she tells Morley Safer. "We had terrible phone calls. Hate mail, just beyond anything and I said, '...I just can't go on anymore.'" More»