The Wall Street Journal reports that the Justice Department is in the preliminary stage of an investigation into whether Morgan Stanley "misled investors about mortgage-derivatives deals it helped design and sometimes bet against." Instead Abacus, the collateralized-debt obligations that Goldman Sachs is under fire for, in this case, there are the "Dead Presidents" deals, named after Presidents James Buchanan and Andrew Jackson. more ›

Irving Picard, the trustee in charge of liquidating Ponzi king Bernard Madoff's assets, has asked a judge to define what constitutes investors' losses. Naturally, some investors believe they are owed the inflated (hello, 46%, 950% returns), very fake and non-existent amounts that Madoff listed on their last balances—while Picard thinks they are owed simply what they invested minus withdrawals. The Post reports, "A decision could prove crucial in how Madoff's assets are divided among his victims, because some investors -- whom Picard calls 'net winners' -- might be denied a share if their withdrawals exceeded their investments." The Manhattan Bankruptcy Court will have a hearing about the matter in...February. And we must bring up this December 2008 quote from one burned (Berned) investor: "The point with [Madoff] was that I always got every document. If you get all the documents, you are not suspicious." more ›

Guess who's getting tired of being locked up in his East 64th Street penthouse, instead of jail? The Post reports that $50 billion Ponzi scheme mastermind Bernard Madoff has, according to a source, complained about his gilded cage, whining, "I'm a prisoner in my own house! I can't go anywhere! I'm stuck here all day!" Tell it to the judge who allowed you to stay at home! And lest you think Madoff can surf the Internet (and, you know, read celebrity gossip and transfer funds to off-shore accounts), his web and phone habits are being tracked. more ›

It's time for billion-dollar Ponzi schemester Bernard Madoff to come clean... or at least as clean as he can: According to the NY Times, a judge has "established Wednesday as the deadline for Mr. Madoff to provide federal securities regulators with a full accounting of his and his New York firm’s assets — from real estate to art works to bank accounts." more ›