Discussion Questions

1. In general, would you define Bernie Madoffs clients as sophisticated or naive? Why?

2. Whether you described Bernie Madoffs customers as nave or sophisticated, what trait allowed his clients to become victims?

3. Why wasnt the Bernie Madoff scheme caught earlier?

Read the following articles or other related articles regarding the Bernie Madoff case and then answer the questions below:

• Jason Zweig, How Bernie Madoff Made Smart Folks Look Dumb, Wall Street Journal, December 13, 2008 http://online.wsj.com/news/articles/SB122912266389002855
• Zachary Goldfarb,.SEC Broadens Its Probe of Failures in Madoff Case, Washington Post, January 6, 2009: http://www.washingtonpost.com/wp-dyn/content/article/2009/01/05/AR2009010501566.html