Data & Research March 11, 2009

Sleep Deficit on the Rise

Be careful on the road: More than one-third of Americans reported dozing off behind the wheel, according to a recent poll by the National Sleep Foundation (NSF).
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Americans are literally losing sleep over their finances, and the lack of sleep can be a public hazard, NSF said. The survey found that more than one-half of adults (54%) have driven when drowsy at least once in the past year, and 28% have actually fallen asleep while driving a vehicle, according to a release of the results.

As the federal deficit grows, so does America’s sleep deficit. One-third of Americans are losing sleep over the state of the U.S. economy and other personal financial concerns, the survey found.

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The number of Americans who sleep less than 6 hours a night jumped from 13% to 20% since 2001. The number of Americans who get 8 hours of sleep dropped from 38% to 28%. Furthermore, the number of people reporting sleep problems has increased 13% since 2001, according to the NSF.

Could financial advisers be in that group of people losing sleep? A recent study of financial planners found that they are feeling more stressed since the markets crashed in the fall (see “Advisers Feel Market Stress“). The survey also found that about a quarter of advisers said work affects their sleep. The majority of surveyed advisers 60%) reporting getting 6 to 7 hours of sleep, and only one-fifth get 8 hours—which is less than Americans overall in the NSF survey (see “Advisers Eat Their Veggies“).

Many advisers might find sleep makes one work more efficiently during this time of increased client phone calls (see “Tips for Managing through the Crisis“). NSF said people in good health are twice as likely than those in poor health to work efficiently, exercise, or eat healthy because they are getting enough sleep.

“It’s easy to understand why so many people are concerned over the economy and jobs, but sacrificing sleep is the wrong solution,” said David Cloud, CEO of the NSF, in the release. “Sleep is essential for productivity and alertness and is a vital sign for one’s overall health.”

Maybe America could use a sleep stimulus.

Compliance March 10, 2009

Madoff Scheduled To Plead Guilty

Bernard L. Madoff, the alleged orchestrator of a $50-billion Ponzi scheme, is scheduled to plead guilty to 11 felony charges Thursday.
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Madoff is the accused mastermind behind a giant Ponzi scheme that ensnared retirement funds and institutional investors, among other victims (see “401(k) Plan Invested with Madoff’ and “Minneapolis Profit-Sharing Plan Also Victim of Ponzi Scheme’).

A Bloomberg news report said Madoff attorney Ira Sorkin announced during a Tuesday federal court hearing in New York Madoff’s intention to enter the plea to a variety of charges, including theft from an employee benefit plan. Madoff, free on $10 million bail, is likely to spend the rest of his life in prison after the pleas, according to the report.

The March 12 hearing will be before U.S. District Judge Denny Chin.

Thousands of investors with Madoff’s New York-based firm, Bernard L. Madoff Investment Securities, (BLMIS) have reported about $43 billion in losses, according to Bloomberg’s tally of victims, the news report said. Federal authorities charged that in connection with the Ponzi scheme, Madoff accepted billions of dollars of investor money—from individual investors, charitable organizations, trusts, pension funds, and hedge funds, among others.

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A news release from the U.S. Attorney’s Office for the Southern District of New York said that as of November 30, BLMIS had approximately 4,800 client accounts and that on December 1, it issued account statements for the previous month reporting those client accounts held a total balance of approximately $64.8 billion.

“In fact,” authorities charged in the announcement, “BLMIS held only a small fraction of that balance on behalf of its clients.’

In addition to the benefit plan theft allegation, charges against the 70-year-old Madoff include: securities fraud; investment adviser fraud; mail fraud; wire fraud; three counts of money laundering; false statements; perjury; false filings with the U.S. Securities and Exchange Commission (SEC).

The U.S. Attorney’s news release said that if found guilty of all counts, Madoff faces a maximum 150 years in prison and is subject to mandatory restitution and faces fines up to twice money made from commission of the offense.

Authorities said Madoff is also subject to forfeiture of the proceeds of the crimes charges as well as all property involved in the money laundering offenses and all property traceable to such property.

The court document is available here.

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