Ex-Nasdaq chief accused of running a Ponzi scheme losing $50 billion
The time of the financial crisis is a good time for all bad investments to collapse. When everything goes well and everybody believes you, you can create a virtual business empire and nobody will ask you to prove it’s real. But now, everyone starts asking. That’s why we have so many companies going bankrupt. And now we have a real financial scandal - Nasdaq’s ex-chief, Bernard Madoff, was accused of losing $50 billion in his “investment fund” which turned out to be a “Ponzi scheme”.
In 1960 Madoff founded “Bernard L. Madoff Investment Securities”. It was an investment fund in which some big investors alocated millions of dollars. For a long time the fund had the reputation of a steady and trusted investment.
This week, Madoff confessed to his closest friends and emplyees that the whole fund was in fact a “Ponzi scheme” and that everything is lost. The losses are around $50 billion, and what has remained in the fund is only $300 million.
The funny thing is that Madoff was arrested on Thursday for a $50 billion fraud and he was released on a $10 million bond.
Tags: bernard madoff, fraud, investment funds
Financial Crisis, Stock Market | admin | 
December 13, 2008 9:05 pm
1 Comment
Other Links to this Post
RSS feed for comments on this post. TrackBack URI
By Political Blogs, December 25, 2008 @ 7:13 am
I really liked you blog post! I searched all over to finally find something that made sense! Would you mind terribly if I place a link back from my site at whiterabbitcult.com?