Posts Tagged ‘madoff’

Madoff faked trades for 13 years?

Friday, February 20th, 2009

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.