On "GMA" today New York City Mayor Mike Bloomberg dished on his old trading buddy – Bernie Madoff – who just gave his first interview since beginning his 150 year prison sentence for fraud.
“I knew the guy casually 30 years, 20 years ago. The SEC put together some studies of the marketplace and I was with Saloman Brothers and Goldman Sachs was there and Bernie Madoff was there…he was a nice guy back then. I haven’t heard his name in 20 years. I mean, all of a sudden I woke up one morning and it was the fraud and I looked at the picture and I remembered,” Bloomberg told me.
Madoff told the New York Times that the big banks and hedge funds he was working with “had to know” about his ponzi scheme. I asked Bloomberg if he agrees.
“I don’t know who knew what. What I do know is Bernie did it. Bernie destroyed an awful lot of human beings, his own family. It’s tragic,” he told me.
So if the mayor – who is a well known investor – was getting those types of high returns would he have suspected anything?
“Anybody that thinks they can beat the market long term by an awful lot is just being unrealistic. But I think the lesson is the lesson that your mother told you and my mother told me a long time ago, don’t put all your eggs in one basket,” Bloomberg said.
“Diversity makes some sense and they should have done that,” he told me.
Watch my interview with Bloomberg here: