"Bernard Madoff, accused mastermind of a $50 billion investment fraud, was placed under house arrest" and will be "subject to electronic monitoring and a 7 p.m. curfew," Bloomberg News reports. "Madoff was arrested Dec. 11 after telling his sons that his firm was 'one big lie,' the SEC said." Story here

Also, U.S. Attorney General Michael Mukasey has recused himself from a Justice Department investigation into Madoff's alleged fraud. "Mukasey is a 1959 graduate of the Ramaz School, a modern Orthodox Jewish school in New York that invested as much as $6 million in a fund that invested with Madoff," Bloomberg added. "Mukasey’s wife, Susan, was headmistress of Ramaz’s Lower School for children in primary grades," and Mukasey's son, Marc, is a lawyer representing one of Madoff's top aides.

SEC chairman Christopher Cox has admitted his agency's failure to spot Madoff's alleged fraud. Madoff's niece, a compliance lawyer with his firm, is married to a former SEC compliance manager.