By Neil SinhababuLooks like another dude got caught running a Ponzi scheme, this one worth $380 million. Interestingly, he claimed that his fund existed back in 1999, despite being released from prison for misappropriating funds in August 2000. Maybe the original currency of his Ponzi scheme was cigarettes.
I can understand that there are many problems in the financial system that we're not going to be able to regulate effectively, because we can't predict what sorts of new financial products will cause future crises, and because people are going to find sophisticated ways of getting around our regulations. But surely we've got some way of ensuring that large financial enterprises aren't just Ponzi schemes.
