Madoff, the Midas who made an ass of investors -- Biggest scam

CG Sponsors




neceolite

Active Member
Joined
Mar 4, 2007
Messages
2,074
Reaction score
4
Points
25
bukan ikan2 bilis je kena tipu rupanya ... jerung2 and ikan puas pun dah terkena kali ni ..

http://www.guardian.co.uk/business/2008/dec/16/viewpoint-regulators-banking-business


He 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."

No, this is not Bernard Madoff, who was arrested last week for the biggest trading scam in Wall Street history, accounting for $50bn of losses. It is a description of Mr Merdle, the fictional banker in Charles Dickens' Little Dorrit, whose bank collapse ruins hundreds of investors across the City.

Madoff, like Merdle, was a pillar of the community. He was a former chairman of Nasdaq, the New York technology market, and even a one-time adviser to the US regulator, the securities and exchange commission. He was so well plugged into the US establishment, it seems, that few people raised doubts about the fact that his supposed $17bn of funds were audited by an obscure accounting firm with a staff of three - one of whom is a 70-year-old partner based in Florida and another, a secretary. Regulators actually inspected the broking firm on two occasions in the past three years, but maintain he kept the fraud off its books, making it impossible for them to spot.

It is claimed Madoff was running a classic pyramid scheme, relying on new money coming in to pay returns to existing investors. If the new money dries up or punters demand their investments back, then it quickly implodes. The alleged scam appears to have been running for years, recording consistent returns of 10-12% a year even in a falling market. The SEC's failure to spot anything amiss with Madoff's business is a further indictment of the light-touch US regulatory system that was one of the causes of the credit crisis in the first place. Some analysts raised concerns about Madoff's methods. But if he was falsifying his financial statements and markets are booming, few questions are asked.

Investors were happy to accept Madoff's exceptional record - even if it is almost unheard of for even top fund managers to rack up consistent returns that beat the market in all conditions. Most investment styles go in and out of fashion and all money managers have an off-year now and then.

Investors ignored one of the classic rules of investment: "If it seems too good to be true, it usually is." Some of the world's biggest banks such as RBS and top-name fund managers such as Nicola Horlick lost money in Madoff's madness. Did they conduct any due diligence before committing funds? As so often in finance, greed triumphed over rational thinking. Dickens could almost have written the plot.

Crisis? What crisis?

Sterling touched a new low against the euro yesterday when it was trading at a little over €1.11 against the single currency. Cue renewed speculation of a one-for-one exchange rate before the last disgruntled skiers arrive back from ruinously expensive holidays in Courchevel this winter.

There are reasons why the pound has been so weak. Britain's economy is peculiarly vulnerable to the global downturn and the government needs to sell a lot of gilts to fund a budget deficit that may hit 10% of GDP. With an open economy and an exposed banking sector, the UK may turn out to be Iceland without the fish and thermal power.

Or maybe not. The pound has already fallen by 26% on its trade-weighted index since the start of 2007, a bigger depreciation than the 19% decline after Black Wednesday and now looks cheap. One firm selling designer menswear in more than 50 countries around the world says that its best-performing store this year has been the one in Covent Garden. A sign that consumers are not really tightening their belts? No, a sign that European shoppers are flooding into London looking for bargains.

The other side of the coin is that Britain's consumer-led recession will be mirrored in 2009 by a more traditional industry-led recession in the eurozone's two biggest economies: Germany and France. Germany is already badly hit by the squeeze on capital spending since the credit crunch. Demand for exports of its hi-tech machine tools is plunging as firms in Asia, Europe and North America mothball investment plans.

Talk of sterling hitting parity against the euro is reminiscent of speculation back in the summer that oil prices, then nudging $150 a barrel, would carry on rising to $200 a barrel. Once the oil story migrated from the business pages to lifestyle columnists moaning about the cost of filling up the 4x4, it was time to get out. The same applies to sterling. The time to have sold the pound was when it was worth $2.11 against the dollar, not now.


taip je .. Bernard Madoff's kat google nanti byk lagi kuar
 
Sponsored Post

neceolite

Active Member
Joined
Mar 4, 2007
Messages
2,074
Reaction score
4
Points
25
antara mangsa2 mamat neh ..


Firms exposed to Madoff's alleged fraud (1/25)

HSBC HOLDINGS
HSBC Holdings has potential exposure of about $1.5 billion, the Financial Times reported, citing unnamed people close to the situation. The exposure is from loans it provided to institutional clients, mainly hedge funds of funds, that wanted to invest with Madoff, the FT reported.

GRUPO SANTANDER SA
Spain's largest bank said its investment fund Optimal has a 2.33 billion euro ($3.05 billion) exposure to Madoff Securities.


MAN GROUP
Said it is exposed through RMF, its institutional fund of funds business, which has approximately $360 million invested in two funds that are directly or indirectly sub-advised by Madoff Securities.


BBVA

Spain's second-largest bank said its international operation has about 30 million euros exposure to Madoff, and it sees a maximum potential loss from Madoff-linked investments of 300 million euros ($404 million).


ASCOT PARTNERS
According to a Wall Street Journal report, the fund where former GMAC chairman Jacob Ezra Merkin is a money manager has an exposure of $1.8 billion.

ACCESS INTERNATIONAL ADVISORS
According to a report by Bloomberg, Access has an exposure of $1.4 billion.

AXA SA
Said it has negligible exposure to Madoff, well below 100 million euros.

BARCLAYS
Any exposure for British bank Barclays to Madoff would be "minimal," a person familiar with the matter said, but Barclays declined to comment.


UNION BANCAIRE PRIVEE

Swiss bank that invests in funds of hedge funds has lost about 1 billion francs ($850 million), according to Le Temps, citing unnamed banking sources. Full Article

ROYAL BANK OF SCOTLAND GROUP
Royal Bank of Scotland Group said it had exposure through trading and collateralized lending to funds of hedge funds invested with Madoff, with a potential loss of around 400 million pounds ($597.9 million).

NATIXIS
Natixis said it could have a 450 million euro ($602 million) indirect exposure to Madoff. Full Article

BNP PARIBAS
France's largest listed bank said it has a potential 350 million euro ($464.3 million) exposure. Full Article


REICHMUTH & CO
Swiss private bank said its fund of funds Reichmuth Matterhorn had an exposure to investments linked to Madoff that amounted to about $325 million. Full Article


NOMURA HOLDINGS
Nomura Holdings said it had a 27.5 billion yen ($303 million) exposure related to Madoff, but the impact on its capital would be limited. Full Article



UNICREDIT SpA
Italy's second-biggest bank said its own exposure is around 75 million euros ($101 million), while in its Pioneer Investments unit, some funds "are exposed to Madoff indirectly through feeder funds." Full Article


SOCIETE GENERALE
Said its exposure is negligible, below 10 million euros.


MAXAM CAPITAL MANAGEMENT
The fund has lost about $280 million on funds invested with Madoff, according to a Wall Street Journal report.


EIM GROUP
Le Temps reported that EIM Group, a fund of hedge funds, said it has a $230 million exposure. Full Article


FAIRFIELD SENTRY LTD
The $7.3 billion hedge fund run by Walter Noel's Fairfield Greenwich Group had accounts with Madoff Investment Securities. Full Article



KINGATE GLOBAL FUND
The $2.8 billion hedge fund run by Kingate Management Ltd had invested in Madoff Investment Securities. Full Article



UBS
The investment bank unit of the Swiss financial group has a limited and insignificant counterparty exposure, its spokesman told Reuters. Full Article



BENEDICT HENTSCH
Swiss private bank said its exposure to products linked to Madoff amounted to 56 million francs ($47 million), or less than 5 percent of assets under management. Full Article



BRAMDEAN ALTERNATIVES
UK asset manager, headed by well-known fund manager Nicola Horlick, said almost 10 percent of its holdings were exposed to Madoff. Bramdean said it had two holdings that maintain trading accounts with Bernard L. Madoff Investment Securities that represented 9.5 percent of its net asset value at end-October. Full Article




BANESTO
Banesto said it has insignificant exposure, but declined to disclose the size of exposure. Full Article
 

neceolite

Active Member
Joined
Mar 4, 2007
Messages
2,074
Reaction score
4
Points
25
The victims of Bernard Madoff's fraud

The victims of Bernard Madoff's fraud



For three decades, retired carpet fitter Arnold Sinkin and his wife Joan entrusted Bernard Madoff with their savings. Overnight, the Florida couple's nest egg of nearly $1m (£670,000) appears to have evaporated.

"There wasn't a quarter when he didn't send me a legitimate-looking statement," Joan Sinkin, 75, said. "Our basket was about 40 stocks. If I was to mention any stock on the list, you'd know it. There was AT&T, Cisco, Schlumberger. If I needed $5,000 out from time to time, it wasn't a problem."

The Sinkins were introduced to Madoff by an accountant who looked after their savings in the late 1970s. Madoff told them that they would have no say over day-to-day investment decisions but they could withdraw funds whenever they wanted. "That's the way he worked for years - I still don't understand what happened," said Mrs Sinkin.

Like many others, they handed greater sums to the disgraced financier as his returns appeared reliable. His arrest means the couple will have to sell their second home in New York and look to their children for financial help. Mrs Sinkin, whose 76-year-old husband suffers from cancer, is furious.

"His name makes me sick. I really don't want to see him, speak to him or hear anything more about him."



http://www.guardian.co.uk/business/2008/dec/15/madoff-fraud-investors-victims-news
 

AILA2002

Super Active Member
Joined
Mar 11, 2008
Messages
8,094
Reaction score
326
Points
81
rasa tamak tak mengenal bangsa...
 

neceolite

Active Member
Joined
Mar 4, 2007
Messages
2,074
Reaction score
4
Points
25
Bernard Madoff's Circle of Victims Widens; Charities Caught in his Scheme, Forced to Close

As if the city's charities didn't have enough to contend with this holdiay season, it looks as though newly infamous investor Bernard Madoff is going to make things that much worse. Mr. Madoff, who is all over the news for squadering billions of dollars in high-profile money in a massive Ponzi scheme, will be taking a number of philanthropic organizations down with him. Via Bloomberg, we have a partial talley:

- Both the JEHT Foundation, a large foundation dedicated to electoral reform and improving the criminal justice system, and Massachusetts's Robert I. Lappin Charitable Foundation, which covered the costs of trips to Israel for teenagers, will close as a result of their lost investments.

- Mr. Madoff seems to have been solely responsible for investing the money of author and Holocaust survivor Elie Wiesel's foundation, which sponsors an annual ethics contest and after-school programs for Ethiopian Jews in Israel.

- He was also a money manager for Steven Spielberg’s Wunderkinder Foundation, which disbursed about $5.2 million in 2006 to causes like the Ross School and Los Angeles’s Cedars-Sinai Medical Center, and handled 45 percent of the $324 million Carl and Ruth Shapiro Foundation, which donated to Brandeis University and Boston's Museum of Fine Arts.

- SAR Academy, an Orthodox Jewish school in Riverdale, New York had invested about a third of its $3.7 million dollar endowment with Mr. Madoff.

- Mr. Madoff also headed up New York Mets owner Fred Wilpon’s family foundation, which donated $50,000 to New York’s City Center and $10,000 to New York’s Jewish Museum.

Representatives for these organizations have mostly avoided comment. Maybe they're waiting to wake up?



http://www.observer.com/2008/o2/bernard-madoff-circle-of-victims-widens


cian wooo ... charity yang pernah disponsor pun kena wooo ... scam tahap dewa perang
 
Last edited:

oxygenO2

Legendary Member
Joined
Apr 7, 2008
Messages
12,191
Reaction score
29
Points
120
hmm,patutla ekonomi hancus!!!:(( :((
 

gOdFeLLa

Senior Member, InstaForex Official, Introducing Br
Platinum Member
Joined
Jan 4, 2007
Messages
9,441
Reaction score
401
Points
81
HYIP terbesar di dunia ni...

:(scam:(scam:(scam:(scam:(scam
 
Sponsored Post
Top
Log in Register