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• "There's only so much due diligence you can do," hedge fund manager Arki Busson explained to Bloomberg News when asked how he managed to get suckered by Bernie Madoff. This is especially true when you spend most of your time chasing models and actresses. [BN]
• Bernie Madoff's lawyer says his client will agree to "tightened bail requirements" to stay out of jail. Maybe he could be confined to his bathroom instead of his entire apartment? [BN]
• Bank of America started handing out pink slips yesterday as it plans to cut 35,000 employees following the merger of BofA and Merrill Lynch. [NYP]
• Bill Ackman's Pershing Square lost 12 percent in 2008. [BN]
• The SEC has reopened its investigation into insider trading allegations at Art Samberg's Pequot Capital. [WSJ]
Wilbur Ross would like to buy a bank if you've got one to sell him. [CNN]