Madoff scandal stirs old fears of anti-Semitism

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Madoff scandal stirs old fears of anti-Semitism


By Charita Goshay
GateHouse News Service
Posted Feb 05, 2009 @ 11:30 PM
CANTON, Ohio —
Many Americans were shocked by the fraud scandal involving billionaire investor Bernard Madoff, but for American Jews, it has been devastating. Why have so many who have never met Madoff taken his fall so personally?

“I think, quite honestly, there may be some embarrassment,” said Edward Buxbaum, executive director of the Canton Jewish Community Center and the Canton Jewish Federation.

Buxbaum said he’s disturbed by the descriptions of Madoff as a “Jewish money manager” with a predominately Jewish clientele — which isn’t true.

“Ken Lay from Enron wasn’t referred to as a ‘Protestant CEO,’ ” he said. “I think because there’s been so much reference to his faith and that of his investors, I genuinely think there’s been some embarrassment in the Jewish community that a Jewish person did this, not only to Jews, but non-Jews. How could he do that? It isn’t a Jewish or ethical thing to do.”

Ethical people

“I think the first thing that it is important to understand is that our tradition teaches us, ‘Kol Yehudim areivim zeh b’zeh,’ or ‘All Jews are responsible one for another,’ ” said Rabbi Leah Herz of Temple Israel. “The implication is that we are not only responsible for our own individual behavior, but that we are also communally responsible. That is why when someone like Madoff comes along, we all feel shamed by his actions as we believe that it reflects badly upon all Jews. Similarly, when a Jew achieves something great or acts in a commendable way, we all feel pride and celebrate.”

Buxbaum said most Jews consider themselves “extremely ethical people” and that constant references to Madoff’s religion tap into age-old fears of stereotyping.

“I think a number of people feel this can and will (revive) stereotypes that Jews control the banks and the financial market,” he said. “There is genuine fear this can lead to anti-Semitic feelings.”

“There is so much in Jewish law that mandates integrity in business,” said Herz, a former stockbroker. “So, when someone like Madoff hits the news, we cringe at how much his actions oppose all that we stand for.”

Herz said the Torah and Jewish commentaries are filled with rules and regulations regarding fair and honest business practices.

Old wounds

“People like Madoff only dredge up anti-Jewish sentiment and reinforce horrible stereotypes about Jews and business,” she said. “Few people know that it was roots of anti-Semitism in the early centuries of the Common Era that forced Jews into certain occupations because they were prohibited from other occupations, or because there were occupations which Christians did not want to engage in.

"For example, Jews were not permitted to own land, so they couldn’t be farmers. They were not permitted to join professional guilds because these were the domain of Christians, so things like being a silversmith, a carpenter and so on, were prohibited. This applied to so many occupations that Jews were relegated to things like money-lending, having to dirty their hands with usury, the collection of interest on loans. This was seen as a despicable vocation by Christians.”

Herz points to Shakespeare’s play, “The Merchant of Venice.”

“The name ‘Shylock’ has become synonymous with the anti-Semitic view of the Jew as money-hungry, deceitful,” she said. “These are stereotypes that Jews have had to battle for two millennia, and someone like Madoff only opens up old wounds and reignites negative beliefs.”

Betrayed

Herz said the Madoff scandal devastated hundreds of individual investors and dozens of Jewish philanthropic organizations.

“Enormous sums of money were lost by organizations who do very important work all over the world, not only for Jews, but for all people,” she said. “The fact that a Jew did this to other Jews is about as shameful as it can get ... Add to this the current recession, with economic doom looming everywhere, and there just isn’t the money to replenish the billions that have been lost through his Ponzi scheme.”

Buxbaum said one such organization was Yeshiva University, where Madoff was treasurer of the board of trustees and chairman of the business school. Yeshiva lost $100 million.

“I can’t imagine how this guy can live with himself,” he said. “I don’t care if he’s Jewish, Muslim, Polish, whatever. From everything you read, he did this to friends. It’s just amazing.”

“It’s very disheartening that anyone, especially someone that so many organizations put our faith and trust in, would do this with dollars that we were trying to do good deeds with; it’s unbelievable,” said Carol Ann Schwartz, regional president of Hadassah, the volunteer Jewish women’s group that underwrites educational and health projects in the United States and Israel. Hadassah lost $90 million.

“When I went to Hadassah’s national board meeting, people were `so upset, unbelievably upset. This isn’t money that you or I would put in savings account, or use to buy something frivolous. It’s money we were able to send to people who needed it,” Schwartz said.

Penance possible?

Though the loss is significant, Schwartz said, Hadassah will remain true to its mission, noting that even before the scandal, Hadassah was making plans to tighten its budget and refocus on its core mission.

“We had a two-year plan that got accelerated,” she explained. “We’re a strong grassroots organization of volunteer women who understand what’s happened. We’re going to (recover) one donor at a time. We won’t let it defeat us. We’re survivors; we’re strong. I feel badly for those who invested everything with him; those invested their life savings. There were organizations who lost everything they had.”

Herz said Madoff has become a pariah.

“There is a concept in Judaism which treats people like this by putting them in ‘cherem,’ ” she said. “Think of it like the public embarrassment stocks, like they used to lock people into in public squares. They are ostracized by their community, not allowed certain privileges in their synagogue, no one will do business with them, et cetera. Unfortunately, in Madoff's case, none of this will have a real impact because the damage is so deep. ... But Judaism does have very clear guidelines regarding ‘teshuvah,’ repentance or turning back.”

Herz said Madoff must acknowledge his sin and take full responsibility for it, and must ask forgiveness from God and from every person wronged.

“I can’t imagine that Madoff can or will do this,” she said. “There is no way of knowing the number of people that he has impacted. Finally, the person has to state that they will make every effort possible to never do it again, and that the attempt must be sincere. Madoff will be hard-pressed to fully do teshuvah, as so much of what he has done is simply irreparable.”

The Repository