Madoff's Effect on Yesha Musician

Madoff Loss Hits Art Aid for Young in Israel

...the America-Israel Cultural Foundation.

Small and little known outside Israel, the foundation has enormous influence there and in classical music worldwide. Receiving one of its scholarships for lessons, conservatory tuition or study abroad is an essential stamp of approval for Israeli musicians, and the foundation counts renowned musicians like Daniel Barenboim, Itzhak Perlman, Pinchas Zukerman, Gil Shaham and Yefim Bronfman as recipients when they were students. But this year, disaster looms. The foundation’s endowment of about $14 million was in the hands of Bernard Madoff and evaporated in his Ponzi scheme. Like other victims of the fraud the foundation received statements showing false earnings tied to the stock market, said David Homan, the foundation’s New York-based executive director.

...The foundation was one of many Jewish organizations hit hard by the Madoff scandal. The financial debacle has raised the prospect that it could shut down.

“I just can’t believe it will happen, or that people will let it happen,” said Orit Naor, its executive director in Israel.

So far about $1 million in emergency money has been raised from individuals, corporations and foundations, as well as the national lottery, to ensure that this year’s recipients are given their grants and maintain a slimmed-down program next fall. To save money the foundation dismissed most of its staff in its Tel Aviv and New York offices. A gala fund-raiser is planned for Carnegie Hall in January to celebrate the foundation’s 70th anniversary, and many of the big-name recipients will perform.

The loss has already meant hardship for Micha Finkelstein, 19, a cellist in the army who lives in Tekoa, a West Bank settlement. His scholarship, for lessons, was cut in half. His parents made up the difference. It’s hard to overestimate the importance of the scholarships here. They serve as credentials to be admitted to other music programs around the country. Some students choose their teachers based on the number of past scholarship winners they have taught. Some want to audition even knowing that there is no chance of a scholarship...

Madoff in Court: The Jewish Angle

Judge Denny Chin had made clear that he was not going to allow the Madoff guilty plea to turn into a Wailing Wall for the victims

Source


"Wailing Wall" is, in this use, a toponym, and its meaning: "a place to vent one's woes or (less often) to seek relief from them"


And that reminds me of this joke (and it appears in various forms):

A female CNN journalist heard about a very old Jewish man who had been going to the Western Wall to pray, twice a day, every day, for a long, long time.

So she went to check it out. She went to the Western Wall and there he was, walking slowly up to the holy site.

She watched him pray and after about 45 minutes, when he turned to leave, using a cane and moving very slowly, she approached him for an interview.

"Pardon me, sir, I'm Rebecca Smith from CNN. What's your name?"

"Morris Fishbein," he replied.

"Sir, how long have you been coming to the Western Wall and praying?"

"For about 60 years."

"60 years! That's amazing! What do you pray for?"

"I pray for peace between the Christians, Jews and the Muslims. I pray for all the wars and all the hatred to stop. I pray for all our children to grow up safely as responsible adults, and to love their fellow man."

"How do you feel after doing this for 60 years?"

"Like I'm talking to a friggin' wall."

Madoff - Now The Photoshopping

For the benefit of my non-Jewish readers:

kaddish is the Jewish prayer for the dead
goniff is Yiddish for 'thief'

YU's Richard Joel Wrote Me (and I Replied)

This form letter came into my email box as a YU graduate (excerpted):

...Bernard Madoff is no longer associated with our institution in any way. The University had no investments directly with Madoff. Last Thursday night, we were informed by Ascot Partners, a vehicle in which we had invested a small part of our endowment funds for 15 years, that substantially all its assets are invested with Madoff. The Ascot fund was managed by J. Ezra Merkin who has served as a University trustee and chairman of the investment committee. Mr. Merkin has resigned from all University positions. (see here)

In the most recent statement from Ascot, Yeshiva's investment was valued at about $110 million, which represents about 8% of our endowment. While these facts are disappointing, we need to remain focused on the larger picture...

Let me be clear regarding our financial position:...we are in the same or better position as many universities...Much more critical to our future health is the continued level of financial support from the YU family, philanthropists, and friends. So, while we are in a healthy and strong position to move forward, we must use the moment to address all concerns that this situation has illuminated.

In light of recent developments, we have decided to examine our existing conflicts policies and procedures, and governance structures...to ensure that our policies, procedures and structure reflect not only best practices, but the gold standard -- the standard to which we aspire for all our endeavors. We will be working closely with our advisors over the coming weeks and months and I'm confident that we'll emerge stronger than ever.

I must add a more personal thought. We all should use these times to reflect on our blessings but also to reflect on our responsibilities. We should constantly be communally introspective and focus on advancing our ideals. The times are appropriate for us to focus on our core values, to practice and refine them and to share them with the world. We can and should always advance. Yeshiva University is committed to engaging in that conversation with other people of good will. I thank you for your interest, commitment and support.

Sincerely,

Richard M. Joel
President, Yeshiva University

My reply was curt:

In Israel, to invest money in a fund that is owned or managed by a person who is a trustee and chairman of a University committee would be considered criminal.

Yisrael Medad

A New and Sordid Definition of Jewish Genius

But a question still dominates the investigation: how one person could have pulled off such a far-reaching, long-running fraud, carrying out all the simple practical chores the scheme required, like producing monthly statements, annual tax statements, trade confirmations and bank transfers.

Firms managing money on Mr. Madoff’s scale would typically have hundreds of people involved in these administrative tasks. Prosecutors say he claims to have acted entirely alone.

Source

Madoff and Me

Luckily, I don't have enough money to be involved in securities, bonds, hedge funds, investment funds and what-not.

But my alma mater does:-

Madoff was a donor to the Democratic Party and to Jewish organizations. A number of large Jewish charities are expected to be among the investors who lost money in Madoff's funds. Madoff was chairman of the board of Yeshiva University's Sy Syms School of Business and treasurer for the university's board of trustees. A representative for Yeshiva said the university was still trying to find out if the institution had invested money with Madoff..."We are shocked at this revelation," said the university representative. "Bernard Madoff has tendered his resignation from all positions and involvement with the university. Our lawyers and accountants are investigating all aspects of his relationship to Yeshiva University."

I am sure that antisemites are having a field day but many Torah institutions will probably suffer dearly.


P.S.

On Richard Joel of YU: here