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Posts Tagged ‘Bernard Madoff’

Society was aware of Mr and Mrs Merdle. Society had said ‘Let us license them; let us know them.

The Merdles and Sparkler

The Merdles and Sparkler

Mr Merdle was immensely rich; a man of prodigious enterprise; a Midas without the ears, who turned all he touched to gold. He was in everything good, from banking to building. He was in Parliament, of course. He was in the City, necessarily. He was Chairman of this, Trustee of that, President of the other. The weightiest of men had said to projectors, ‘Now, what name have you got? Have you got Merdle?’ And, the reply being in the negative, had said, ‘Then I won’t look at you.’

This great and fortunate man had provided that extensive bosom which required so much room to be unfeeling enough in, with a nest of crimson and gold some fifteen years before. It was not a bosom to repose upon, but it was a capital bosom to hang jewels upon. Mr Merdle wanted something to hang jewels upon, and he bought it for the purpose. Storr and Mortimer might have married on the same speculation.

Like all his other speculations, it was sound and successful. The jewels showed to the richest advantage. The bosom moving in Society with the jewels displayed upon it, attracted general admiration. Society approving, Mr Merdle was satisfied. He was the most disinterested of men,–did everything for Society, and got as little for himself out of all his gain and care, as a man might. – Charles Dickens, Book the First: Poverty, Chapter 21: Mr Merdle’s Complaint

Mr. Merdle kisses Fanny's hand

Mr. Merdle kisses Fanny's hand

For those who have not read the book or seen the last installment, spoilers ahead:

The Merdles  take front and center stage at the start of the last installment of PBS Masterpiece Classic’s Little Dorrit, fulfilling the promises that this film’s theme of bankruptcy and fallen fortunes is a relevant one in today’s world. Mr. Merdle, played by Anton Lesser, was the Man of the Age. He made money for his investors seemingly out of thin air and they loved him for it. Yet Mr. Merdle (the last name is a play on the French word Merde, meaning shit) seemed to be chronically unhappy, despite his showy wife, elegant house, and sterling reputation.  The viewer soon learns what had been keeping him preoccupied: he was stealing from one fund to pay for another (shades of Bernard Madoff), and issuing shares without collatoral.  His house of cards tumbled down, and along with it, all his investors. Instead of facing the consequences, Merdle committed suicide with a pen knife he has borrowed from his daughter-in-law Fanny. To deaden the pain of stabbing his jugular vein with a blunt knive, he drank laudanum, leaving others to literally clean up his messes. Merdle’s demise affected a score of people, but except for the money they lost and their uncertain financial future, his wife, daughter-in-law and stepson did not seem greatly affected by his suicide. Fanny wondered when her pen knife would be returned and the butler took off  soon after learning that the family was bankrupt, leaving his post without notice. With a few deft touches, Charles Dickens showed how quickly the mighty can fall and that the world really doesn’t give a shit except in the instance where it is affected.

Anton Lesser and Nick Jones as Mr. Merdle and his butler

Anton Lesser and Nick Jones as Mr. Merdle and his butler

Most people could and still can lose other people’s money without much conscience, but during this and the Regency era debt was considered to be a matter of honor (would that it was today).  Social historian Eric Hobsbawm argued that “Bankruptcy was, according to economic theory, the penalty of inefficient businessmen, and its spectre haunts the novels of Victorian England.”  (Victorian Web) Mounting debts affected people in different ways. George Brummel fled to France in 1817 rather than face debtor’s prison when he fell out of favor with the Prince Regent and could not repay his creditors. He was not the only gentleman to flee to the continent due to insolvency. The cost of gambling, bad investments, horses, carriages, fine food and a decent wardrobe could tip a modest – even a great – fortune over the edge. Other individuals, like William Dorrit and Arthur Clennam, were sent to debtor’s prison. Some chose suicide, like Mr. Merdle, leaving their families to face the consequences.

Bath house where Merdle committed suicide

Bath house where Merdle committed suicide

The tale of Little Dorrit is not only based on Dicken’s personal experience of watching his father incarcerated in the Marshalsea, but the novel is also set against the backdrop of real bank failures:

Little Dorrit was originally published between 1855 and 1857 (many of Dickens’ works first appeared in serial form) at a time when the collapse of the Royal British Bank was receiving much publicity. The collapse was a result of the bank having channelled most of its capital into Welsh gold mines in the vain hope the Wales would prove to be the next California. (The discoveries which sparked the California Gold Rush had been made in 1848). After the bank’s collapse it was discovered that the directors had made secret loans to themselves and their friends.

Dickens used the preface to Little Dorrit to defend what he called “that extravagant conception, Mr. Merdle, by alluding to “a certain Irish bank” – the Tipperary Bank which failed in 1857 – and he also mentioned “the curious coincidence” that the public examination of the former directors of the Royal British Bank took place when he was finishing the book. – The Financial Fiction Genre

Arthur and Amy on their wedding day

Arthur and Amy on their wedding day

After losing his and his partner’s investments in Merdle’s schemes, Arthur Clennam (Matthew Mcfadyen) went willingly to the Marshalsea instead of escaping his obligations. After his debts were paid he settled for a “modest life of usefulness and happiness” by marrying Amy Dorrit (Claire Foy).

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Missed an episode? Watch episodes online at this link through May 3rd.

A happy ending after all

A happy ending after all

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