Bernard Madoff Essay

Bernard L. Madoff Investment Securities was one of the many brokages found in the Wall Street circle. Falling under the LLC or Limited Liability Company business type as the tax forms and Bank Accounts all ran under its Founder Bernard L. Madoff. The company’s primary function was to be an investment adviser and broker to its clients (Broker Check). Meaning it would not only provide a location for shareholders to buy and sell stocks and bonds; it also provides advice to come to the best decision. In fact, the clients that were accepted were also given portfolio management, allowing for professional more adept in the market could increase their investment. Nonetheless, they would always require the consent of the shareholder to make particular

Something he had built up for years only to then lose it all, making Madoff vow for “Lasting Success… whatever it took” (Madoff). To make ends meet than the company would begin making Market Makers, one of the smaller and riskier jobs of the market. They would become the people who traded the actual stock and had to find people willing to trade for their clients stock. Which unfortunately went with risk, this, however, was the movement Madoff needed to get better off later. It would even earn his a nickname of Scrappy Market Maker, as all his trade were ones Wall Street would never take.

In light of the company’s slow start, it began to skyrocket around the 1970’s, as it begun trading through a new form of trading. Electronic trading, something, not many Brokages on Wall Street did at the time. This meant once the rest of Wall Street started to notice the functionality Madoff’s and four others became major pioneers of the system. As a matter, in fact, they had such an advantage in late 1980’s these five companies processed half of the NY stock exchange (Investopedia). This would the only legitimate difference Bernard L. Madoff Investment Securities would do from its

A critical factor was the management of the company, to anyone outside of the company inner circle it was a black box (Economist). Madoff also made sure he was the only one who knew about these transactions, allowing his employees to continue making trades. He would even keep his family in the dark until the 2000s which would lead to his arrest. Regardless the main way he ran the company was by selecting a certain client, avoid those that asked many questions. Take only those that wanted money, not how he got allowing him the secrecy, needed to keep such large sums of money