Chairman of Nasdaq Arrested for 50billion Fraud

Chairman of Nasdaq Arrest for 50billion Fraud

business.smh.com.au

Former Nasdaq chairman Madoff on $75b securities fraud chargeDavid Glovin and Bradley Keoun
December 13, 2008
BERNARD MADOFF, president of market-maker Bernard L. Madoff Investment Securities and a former chairman of Nasdaq, has been charged by prosecutors in a $US50 billion ($75.6 billion) securities fraud at his advisory business.

Madoff, 70, was arrested by the FBI and appeared in Manhattan Federal Court charged with securities fraud. Judge Douglas Eaton released him on a $US10 million bond guaranteed by Madoff's wife and two others.

"He's one of the pioneers of modern Wall Street," said James Angel, an associate professor at Georgetown University in Washington.

Madoff's firm was among the first to automate market-making, in which a dealer continually buys and sells stock, and was among the largest to have "payment for order flow", or paying to handle customer orders. "The exchanges didn't like the practice and questioned whether customers got the best price," Professor Angel said.

Madoff's New York firm serves hedge funds, banks and wealthy individuals. It was the 23rd largest market-maker on Nasdaq in October, handling a daily average of about 50 million shares, exchange data show. The firm specialised in handling orders from online brokers in some of the largest US companies, including General Electric and Citigroup.

Madoff started in 1960 with $5000 of savings and took advantage of securities law changes in the 1970s designed to spur competition in US sharemarkets, according to a profile posted on the website Finance Tech.

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[edit on 12-12-2008 by BornPatriot]

Well as they say nothing is new under the sun.
anywho~! - this is a pre cursor to a depression folks..
they only arrest exchange chairmans so they when they need someone to blame for something that is systemic... So, in the next coming weeks you will see FRAUD this Fraud that ..
at least until - FEB... and folks I dont want to alarm you but the markets just seem to disappear after Feb... we all know this is a fallase -- but seriously -- Feb. is about as far in the future as I can see and it doesnt look good... Feb. 17th on seems to be darker than night... its a real crap shot out 90 days

business.smh.com.au
(visit the link for the full news article)

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