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The $4.5 Billion Dollar Bank Run
Nov 07 201111:20 am EDT -
The Times' Rorshach Geithner Story
Apr 27 20099:26 am EDT -
Sinking Animal Spirits
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Counter-cyclical Urban Policy
Apr 26 200910:00 am EDT -
Be Your Own Counterfeiter
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Being Tim Geithner
Apr 25 200912:37 pm EDT -
Notes From a Press Conference Naif
Apr 25 20099:41 am EDT -
What Good is the News?
Apr 25 20098:32 am EDT -
Stressful Enough
Apr 24 20092:29 pm EDT -
Not Regretting the Pound
Apr 24 20091:09 pm EDT
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Madoff: Effectively Unaudited
Floyd Norris asks, of Bernie Madoff:
I assume his funds' books claimed to be audited. Who were the auditors? How were they fooled?
It turns out that investor Jim Vos already looked into that:
Madoff's auditor, Friehling & Horowitz, operated from a 13-by-18-foot office in Rockland County, New York, a small operation for the auditor of such a large firm.
In other words, Madoff might as well have got a chimpanzee to audit the books, for all the checks and balances that Friehling & Horowitz provided. Which, of course, is why he chose them in the first place. I'm sure they were well compensated for not asking too many awkward questions; it would be nice if they, too, go to jail.
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