… Ezra Merkin, no one can be surprised that the school is in a ratings free fall. This blog has spent years detailing the damage that this school, with its conflict-of-interest-riddled trustees (a group that boasts such stellar characters as Ira Rennert and Zygi Wilf), and its greedy, morally clueless president, did to itself over the last ten years. You don’t get to brutalize a university the way this pack of rascals did (and some of the rascals are still there, rascaling around) without paying a very high price.

… with the same extensive ties to Yeshiva University.

Today’s highest-profile arrestee, Mark Nordlicht, even shares Madoff’s biography. Both had fathers who were financial crooks. Both were deeply involved with Yeshiva University, as were many of their associates. And of course both ran/allegedly ran virtually identical Ponzi schemes.

UD is certain that if the Lord had granted Nordlicht the length of time he granted Madoff, Nordlicht would, like Bernie, have been able to do fifty rather than a measly one billion dollars worth of business.

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A brief review of the latest batch of YU-affiliated miscreants.

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“We have to start to become embarrassed by this. There has to be a huge re-set in the Orthodox community.”

Start here: Your most public institution – Yeshiva University – is an increasingly criminalized location. Admit this and start cleaning it up. Remove Wilf’s name from the campus. Remove Rennert’s name from the campus. Strip of their degrees YU graduates who go to jail for massive financial crimes. And don’t strip quietly. Make a public statement repudiating them.

Find a president who doesn’t hide your affiliation with Bernard Madoff and Ezra Merkin, but who owns up to it and says that you’re now ashamed of it, and ashamed of the greed that made you decide to make those men campus heroes.

Admit that it’s time your university stopped making the news for all the wrong reasons. Admit that your hypocrisy – a pious Orthodox face hiding a cynical self-serving face – has done terrible damage to the school and has somehow got to end.

Subject all of your trustees to financial review by outsiders, with an eye toward conflict of interest and fraud. Then get rid of most of your trustees.

That’s what a huge re-set looks like. At least the beginning of one.

…just as nasty billionaires, in a beautiful synergy, need the, uh, colonic properties of universities.

Bernie and his comrade in trade Ezra Merkin were madly generous, madly esteemed trustees of Yeshiva University. That pious institution made them look pure as the driven snow, preoccupied with things of the mind, things of the spirit; and Bernie and Ezra for obvious reasons valued this look highly.

Yeshiva continues to confer sweetness and light upon the likes of Ira Rennert and Zygi Wilf; and in this it resembles many other American universities, whose buildings and scholarships and professorships bear some seriously nasty names.

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Here’s one. Much-esteemed University of Pennsylvania benefactor Howard Marks is an investor who writes judicious memos about how “markets make mistakes and the greatest market mistakes are driven by emotion – [like] too much greed…”

Marks himself owns but has never lived in a 22,000-square-foot Manhattan apartment which among many other things contains “30 rooms, six terraces, two dozen closets, two chefs kitchens, [and] two libraries.” It sits there on Park Avenue, completely empty, year after year. Like the California venture capitalist who got hold of a long-public beach only in order to post armed guards there to keep anyone from using it, Howard Marks has been driven by some emotion or other to dispense $52 million in order to spend years and years loudly, daily, breaking down the walls of two floors of dead space.

His downstairs neighbors have had enough and are suing. They point out that he’s been breaking building construction rules involving noise levels and hours of work per day for years, and ignoring their pleas that he stop. He has made their lives hell. Not only does he not give a shit; his lawyers are fighting the neighbors tooth and nail.

U Penn gets all excited and writes of Marks as if he’s a god because he gives a few hundred thousand to some of their writing programs, while their benefactor directs his real money to this twisted nihilistic project characterized by vacancy, aggression, and stunning waste.

Could Republican voters be the next awakened fleecees?

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In other Trump/university news: A foreign university has already revoked a Trump honorary degree. Now an American university – Lehigh – has begun talking about the whole honoring Trump thing.

The professor initiating discussion about the Trump degree at Lehigh University specializes in draining away gunk in order to stabilize environments.

As international attention pivots to scandalous, junk-status Yeshiva University, UD wants to acknowledge those people – like Andrew Sole – whose concern for the institution as a university rather than a tit for hedgies on the board of trustees prompted them to act on behalf of YU. She wants to acknowledge the three faculty members who, in 2012, wrote an anonymous letter to the campus newspaper (anonymity being required in the corrupt setting of this rapidly dissolving university) voicing their despair at the baffling failure of the university’s endowment — baffling because the cronies on the board of trustees who were high-risk-betting all of the university’s money away were far too arrogant to tell anyone about it. Why weren’t there conflict rules? Why wasn’t someone supervising the trustees and the money managers? Does it bother anyone that, with the exception of storied Yeshiva trustees Bernard Madoff and Ezra Merkin, pretty much the same people whose staggering financial irresponsibility destroyed the school are still on the board?

There’s a pathos, two years later, to reading these faculty members trying to figure out what’s going on:

No one is speaking about what caused the terrible drain on the endowment and when it will stop. In short, there is no transparency… Yeshiva needs to figure out why the endowment is performing so much poorer than the endowment of every other comparable institution in the nation and fix that problem. We do not know what the problem is or how to fix it – but we see that no one else is discussing what really is the problem, in part because of the utter lack of transparency in YU’s finances.

Well, that’s over. Now the whole world is watching as the story of how a school destroys itself through greed, secrecy, and cronyism, plays out in the national and international press. As the Yeshiva University story escalates, this blog will continue to note the people who warned the school that it was killing itself.

… To the rogue’s gallery that runs and has run Yeshiva University, we must add Julius Berman, who continues to hold a place of honor on one of that farcically scandal-ridden university’s boards of trustees. Berman’s chair emeritus of the all-boys board of Yeshiva’s seminary. And like several of his amazing Yeshiva compatriots, he sure does know how to get into trouble.

[E]ven though most of us are not conscienceless psychopaths, when we make investing decisions we often act as if we are. This observation casts an interesting light on Joel Bakan’s award-winning 2004 documentary “The Corporation.” In that film, Bakan argued that because corporate managers believe they must maximize shareholder wealth, a corporation is a “psychopathic creature” that “can neither recognize nor act upon moral reasons to refrain from harming others.” To the extent this is true, shareholders themselves may be largely to blame. As University of Toronto law professor Ian Lee puts it, “if corporations are in fact ‘pathological’ profit-maximizers, it is not because of corporate law, but because of pressure from shareholders.”

The makers of Bushmaster guns – the gun of choice for today’s compleat carnage connoisseur – are as we speak suffering a sudden de-psychopathologization among American investors.

No worries, though. They’ll take the business to overseas investors.

… set the pace here** – and as for bohemoth endowment losses based on interest-rate swaps, no one will ever outpace Harvard’s Larry Summers .

But Dartmouth is certainly doing its bit, with “the investment of $550 million in interest-rate swaps with now-defunct Lehman Brothers that [a faculty and alumni group] says are now worth $250 million.”

A lot of people at Dartmouth are unhappy about university trustees who are also money managers, and they’ve written a letter about it to the governor and attorney general of New Hampshire.

The letter calls for an investigation into money managers who have invested the Hanover, N.H.-based college’s assets while members of the investment committee… The letter accuses the money managers of “enriching themselves” through private equity, venture capital and hedge fund investments made by the endowment.

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In an official letter distributed to alumni, students, faculty, and administration, Yeshiva University President Richard Joel stated that Merkin, who was Chairman of the University Investment Committee, managing its endowment of almost $1.8 billion (as of about 2 years ago), had invested about $112 million in his own hedge fund, Ascot Partners, which was almost solely invested with the [Bernard] Madoff fund. In actuality, it was an initial investment of $14 million that became falsely inflated to $112 million over time. As such, Merkin collected an initial fee of one percent and later 1.5 percent, standard for all of Yeshiva’s money managers on whose Board of Trustees he sat. He collected over $2 million in fees, almost $1 million for Ascot alone. In fourteen years, the fund grew 9 percent a year, even after subtracting losses for Madoff and expenses. He made at least $10 million from Yeshiva over his tenure. Although Joel implicitly acknowledged that the university’s charter lacked a conflict of interest restriction on the management of school funds, Merkin resigned from all of his positions at Yeshiva that day.

… there’s always some little old lady who rises to iconic sucker status? There’s always some little old lady who explains in a tremulous voice how this nice man called her up on the telephone and was so sweet and patient with her and now he has the $150,000 she’d put away for her dotage…

The University of North Carolina at Chapel Hill looks like that old lady. Now that its latest disastrous football coach has retired, UNC is the sucker du jour.

Although the news came out yesterday that new Bucs coach Greg Schiano has hired his old friend and colleague Butch Davis, there have been conflicting reports about precisely what role Davis will have in Tampa Bay. And the reason for the conflicting reports appears to be an issue regarding Davis wanting to collect paychecks from the Bucs while also collecting all the severance pay he can from the University of North Carolina.

North Carolina fired Davis in July amid an NCAA investigation into academic misconduct and accusations that players received impermissible benefits from agents. According to the Tampa Bay Times, when Davis was fired the school agreed to give him up to $2.7 million in severance. (Because giving $2.7 million to a football coach who was fired amid a scandal is a great way for a public university to use its resources.)

Davis has already received $933,000 of that severance, but the rest of it comes in increments of $590,000 a year in 2013, 2014 and 2015 — but only if Davis is unable to find a coaching job. If Davis has resumed his coaching career, North Carolina can deduct his coaching salary from that $590,000, and if his coaching salary is more than $590,000 North Carolina doesn’t have to pay him anything.

So Davis is apparently hoping to work out a title with the Buccaneers in which he will “serve the Bucs in an advisory capacity” rather than become a coach, and therefore he’d be able to get paid by the Bucs while still collecting his full severance from North Carolina.

Haha Butch boy put ‘er there! Gotta hand it to you!

… UD figures universities with a penchant for sketchy money guys (Yeshiva had Ezra Merkin too) have instituted Trustee Early Warning systems so they can dump the guys before the federal government moves in for the kill.

Brown University’s TEW system must be going

awhooogawhoooga

right now.

Several business schools have approached him, he adds, and asked him to work on ethics courses. He likes that idea; Harvard and Northwestern are in his sights.

And why not? You’d think the reporter for the Jewish Chronicle would at least think to ask the question. Everyone else is getting clawback-sued, and they didn’t – like Yeshiva – have the Madoff/Merkin Partnership on their board of trustees.

… for Inside Higher Education. Title: MARK MADOFF’S POSTMODERN SUICIDE.

… has killed himself.

… is amply compensated.

He’s Number 12 on the highest paid American university presidents list. (Scroll down.)

Great work, President Joel!