What Has Bernard Madoff Investment Securities Done to Investment Securities?

Anyone who has paid any attention to the news, especially any securitization news, has heard about Bernie Madoff Investment Securities and the scandal that this company and man has perpetrated. What effect has this had on the entire investment securities market? The effect has been quite devastating. After years of appearing to be a successful money manager and financial advisor, with billions of dollars going through Bernard Madoff Investment Securities, Bernie finally admitted that the entire run of great investments had been a scam. The man had been running a Ponzi scheme all along, where the funds received from new investors are used to pay returns for previous investors. A bigger part of the scandal was the fact that the authorities, who were supposed to be preventing this exact type of thing from happening, dropped the ball several times.

There were a number of tips and warnings concerning Bernard Madoff Investment Securities, some years before the Ponzi scheme was revealed. Unrealistically high returns for clients month after month should have been a clue to the fraud, because the types of investment securities chosen by Madoff do not normally give returns this high. An investigation into the firm was mismanaged, allowing Bernie Madoff to get away with his scam for even longer. Eventually he turned himself in and admitted what he had done. Because of one man and the company he ran there have been a number of jail sentences, the guidelines and regulations for this market has been tightened, and there has been talk of new laws and even governing agencies to prevent this type of fraud from ever occurring again. In total Bernard Madoff Investment Securities cost investors hundreds of billions of dollars, much of which has never been recovered or was spent on a lavish lifestyle for Madoff, his wife, their family and friends.

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.