What role did the global financial crisis play on bernard madoff ?

and What were the failings of the reguatory system?What role did the global financial crisis play on bernard madoff ?Madoff had created a Ponzi Scheme, the money from new investors was used to pay older investors. He was very intelligent in what he did as he would court high profile investors knocking many affluent ones back that made it look like he was selective and it was an elite investment opportunity to those that were allowed entry.



The regulators were his friends, infact he was one of the many people who would advise regulators on how they should do there jobs. The very people who were meant to be overseeing Madoff were often off playing golf with him. They held him in high regard and never imagined that this guy was up to no good.



Madoff was brought undone by his own sons. He told his sons that he was a fraud and that the whole business he had created was a house of cards ready to collapse. His sons went to the police and told them what ws happening.



After the global finacial crisis many people were angry. The regulatory system (what there was of it) had failed investors. There was little corporate governance taking place and still is till this day.What role did the global financial crisis play on bernard madoff ?
Regulatory System is kind of an oxymoron. The regulators, or the Goldman Sachs Alums closed their eyes until they were forced open.



The Global Financial Crisis - that was what forced the Goldman Sachs Alumni to open their eyes. Madoff was profiting to a scale that was incredible, especially in a down market.What role did the global financial crisis play on bernard madoff ?1. People needed their money and asked for it back. When Madoff couldn't cover it, the lies were exposed.



2. Numerous individuals reported Madoff to the SEC for possible fraud. One person suggested that the SEC ask for copies of one month's records and verify if all of the supposed trades actually took place (a modern test that was similar to how the original Ponzi was caught--that it was impossible to have the volumes he said he had). Since the SEC believed he was legit, they didn't want a dumptruck worth's of paper, so they declined.



Had the SEC looked, they may have found that Madoff was running his Ponzi scheme from one ancient computer; no accounts were online (because if they were people might wonder why the accounts showed no activity at all), no employees except Madoff worked on these accounts, perhaps why Madoff's returns were always positive.



Madoff hired programmers to give him programs that used a randome number generator so that his monthly statements would vary and be less likely to b detected as fraud if statements were compared with others.What role did the global financial crisis play on bernard madoff ?
He ran a pyramid scheme, which basically means he convinced investors to give him millions of dollars by promising them ridiculous returns on their investments. While they stayed with him everything was fine, as he just paid them promised returns from the capital he got from other investors. He used this cash to buy assets which he then used as security to borrow cheaply from financial institutions.



When the credit crunch hit and investors wanted their money back, his investments couldn't cover what he owed.What role did the global financial crisis play on bernard madoff ?READ: No One Would Listen

A great %26amp; scary read.



The global crisis made requests to cash in funds impossible to meet. For the rest... read the book.What role did the global financial crisis play on bernard madoff ?
It caught him out.

Regulatory system was partly run by his wife, wasn't it?

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