Starting as a trader, I burnt out (truth be told, more like 'flammed out') and re-purposed myself as an operating executive, than as a risk manager, and for the past few years, I've leveraged all of those experiences and now I'm a sought after marketing guru that's been enlisted to position companies and help them craft their value proposition statements.
Having worn the hat of 'marketing exec' for several different regulated, financial firms, including the world's largest bank, I'm particularly sensitive (as were all of my partners/employers) insofar as what you say you do, and what you put in writing that you do.
And when you put it on the internet, you might as well cast it in stone for all eternity. Just like emails, just like press releases, and most other digital foot and finger prints that can come back to haunt.
Case study: a little known firm in Greenwich CT called Fairfield Greenwich Group, their website suggests there about 10-12 partners, but they seem to have lots of money under management; 15 billion according to their marketing poop. Their entities are comprised of a registered broker/dealer-which means they're regulated by amongst others something called the "SEC".
As in "Yes, I See. ..that you've violated all kinds of regs, but don't worry, we'll let it pass...do you think you have a job opening for me?")
What's my point?? Fairfield Greenwich's website actually has extremely comprehensive text displaying the very detailed, almost microscopic auditing they purportedly do on a weekly basis of the fund managers they invest in. Including auditing brokerage statements and analyzing the transactions displayed in those statements.
Here's the link to that page. Click it now before they remove it from their website
(There's another link below that you'll want to go to as well; authored by friend and well-known author and film maker Michael Covel. )
But-
Rule 1. Never.. and I mean absolutely NEVER put that kind of stuff on a website. Many website experts even suggest "DO NOT PUT EXECUTIVE PROFILES ON WEBSITE". I'm not sure that I agree with the latter, but in this case, the excruciatingly detailed 'due diligence representations made by this regulated company are almost certain to get them tarred, feathered and embroiled in litigation for the next ten years.
Fairfield Greenwich probably won't survive the litigation, at least their corporate shells won't. The principals in this case will, regrettably for many, likely enjoy the fruits of the fees they've been paid ($500 million!) for years to come while the lawyers dicker about, and while the victims watch any remaining assets be dickered over by the "many experts" that will be retained to sift through the ashes.
Oh--for those that think its unwise or unprofessional for a marketing consultant that has clients from within the financial industry to lambast a firm from within the industry on a blog...I call 'em the way I see 'em.
Here's the link to Michael Covel's comments. Similar observations have been made, but Michael's presentation is perfectly black and white. CLICK HERE TO READ
My last word on Madoff. Actually, it appears to be Madoff's last words, or that of a creative blogger that has a unique perspective on the Madoff fraud. Click here.
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