In yesterday's court order allowing Bernie Madoff to remain ensconced in his Upper East Side penthouse instead of prison, federal prosecutors wrote that Madoff’s lawyer is “engaging in discussions concerning a possible disposition of this case,” which sources tell the Times means he intends to "plead guilty in exchange for some type of leniency." This is probably going to irritate the angry mob that feels like Madoff has had a little too much leniency already — what are the Feds going to do, punish him by confining him to the Golden Door Spa for the rest of his days? But it's good for investors if he cooperates, so fine. And you know where they don't cut deals? HELL.

Signs of Possible Plea Deal For Madoff [DealBook/NYT]