List of the top 25 here. You can click on each name to read about their blunders.
10 top swindlers here.
How did the term "Ponzi scheme" come about?
Although he did not invent the scheme that later came to bear his name, Charles Ponzi's scam was so extensive and initially lucrative that it brought national attention to the fraudulent operation for the first time. In 1919, the Italian immigrant promised investors they could yield considerable profits by purchasing international reply coupons from other countries and then redeeming them in the U.S for postage stamps. To legitimize the scheme, Ponzi established the "Securities Exchange Company" based in Boston. A steady flow of new clients allowed him to pay existing investors, while pocketing millions of dollars himself. But soon enough, the scheme began to raise eyebrows, eventually collapsing and bringing six banks down with it. Collectively, his investors lost an estimated $20 million.
h/t: Barry
I am surprised that the Times included Bill Clinton, correctly as it turns out. But they left out James Johnson from Fannie Mae, who was one of the main architects of the scam, and Barney Franks, ACORN and Barack Obama who all played a role. I admit that Barrack's role was small, but he was certainly tireless in his efforts. Alan Greenspan tried to shut this thing down long before it imploded. This is documented in his testimony before the Congressional Finance committee.
ReplyDeleteThe story is well documented in Reckless Endangerment by Gretchen Morgenson.