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Madoff faked trades for 13 years?

Bloomberg reports that Bernie Madoff made no trades at all to buy the securities that people believed they had in their “accounts” – for the past 13 years.  (which goes back to before George Bush took office….)

This makes almost no sense.  Every trade at Nasdaq has a buying firm and a selling firm, and each trade is reported to the Clearing Corporation (not part of Nasdaq) in close to real time – so that the back office of the firms can reconcile any differences and arrange for transfer of the stocks if they are in certificate firm. 

I believe that Madoff had no certificates for 13 years, and it may be possible his investment firm held no stocks – but it is impossible that there weren’t trades reported to the Clearing Corp from the Madoff broker/dealer firm unless the Clearing Corp itself was in on the ponzi scheme.  I don’t think the SEC still has a handle on what was going on.

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This entry was posted on Friday, February 20th, 2009 at 2:46 pm and is filed under Bernie Madoff Watch. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Madoff faked trades for 13 years?”

  1. Madoff Faked Trades For 13 Years? « Unintended Consequences says:
    February 22, 2009 at 2:38 am

    […] Bloomberg reports that Bernie Madoff made no trades at all to buy the securities that people believed they had in their “accounts” – for the past 13 years. (which goes back to before George Bush took office….) …More […]

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