A Letter to Our Investments | Trust | Retirement Services Clients
I’m sure you’re aware of the financial scandal involving Bernard Madoff, who swindled some of the wealthiest families, foundations, and banks out of more than $50 billion dollars in a massive Ponzi scheme. Since this was revealed, other financial scams have come to light.
Madoff was able to pull off his scam because there was virtually no transparency in his client relationships. He provided little investment detail and was able to hide his activities by using a company-owned broker dealer to execute trades.
I want to assure you that this could never happen with your investment account at Northwestern Bank. Unlike many investment managers, we are subject to ongoing audit and regulatory supervision. In addition, our investment and trust operations are reviewed annually by an outside accounting firm, and our client’s stocks, bonds, and mutual funds are held by independent, nationally recognized custodians.
These factors not only ensure the security of your investments but also provide an independent accounting of your holdings. Under the headline “These Red Flags Can Signal Ponzi Scheme,” an article in The Wall Street Journal pointed out: “If your adviser manages your investments, but the funds are actually held independently, it's impossible for him or her to run a Ponzi scheme.”
We are fiduciaries, which means we must always put the interests of our clients ahead of our own. In fact, we are required by law to do so. This responsibility is at the heart of our relationship with you.
In these turbulent times, I hope this information helps strengthen the confidence and trust you have placed in us. Please contact me if you have any questions or concerns.
Very truly yours,
Scrub Calcutt
President & CEO
Questions? Please let me know.