In his first interview since being incarcerated, Bernie Madoff stated that “the banks had to know.” Madoff did not specify which banks or funds might have known about the scheme and he didn’t say that any of them were accomplices or otherwise implicate them.
Does this have any legal ramifications for the lawyers attempting to recover any of the funds? Is there a de facto “don’t ask, don’t tell” system that bankers can use to plausibly deny any culpability? Client privilege or something similar?
Also, why did they have to know? What financial red flags might a banker had to have seen to realize that something illegal (or at least questionable) was going on?
I did a search and got nothing on this here at the SDMB, but if you’ve already hashed this out please disregard and kindly direct me to the thread.