A source suggests that Fairfield Greenwich, Bernie Madoff’s biggest feeder, is “winding down” the firm. The source says no timetable has been set.
We have not confirmed this, and we don’t know that it is accurate. That caveat aside: We would be very surprised if FGG made it through January without closing its doors. So preparations for a wind-down certainly wouldn’t surprise us.
As you’ll recall, FGG had about $7 billion invested with Madoff, all of which has presumably been vaporized. The firm also had about another $6 billion invested with other managers, but we would be shocked if the vast majority of that weren’t being frantically redeemed by outraged, terrified clients.
FGG’s future, we suspect, will involve recalling its remaining client funds from other managers and returning them to clients, letting go its employees, and handing what’s left of the firm over to the attorneys.
FGG’s principals, we imagine, will spend much of their professional time over the next few years reviewing legal filings, testifying, preparing for testimony, and filing lawsuits. If they are lucky, they won’t have their personal assets seized. If they aren’t lucky, they will.
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