How is it that Chase Manhattan and JP Morgan did not know?” he wondered. “Chase and then JP Morgan Chase held Madoff’s account there, and he put all of the money into a single account. There was up to $17- to $20 billion in that account. They made a fortune off of him. Somehow or other, they never took into account that he wasn’t receiving or sending any money to brokers. Somehow, Chase and Morgan never noticed that money wasn’t coming into this huge account from stocks and other investments. If he had been trading securities and trading options, he would have to have been sending money to brokers and they would have had to have been sending money to him. It is unbelievable.”
Velvel said that it is also difficult to understand why there was no external custodian in place for those accounts and the disgraced financier was allowed to act as his own custodian. He said that the big firms which sent business to Madoff, and in turn were making a fortune from feeding clients to him, received the de facto equivalent of bribes.'
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Yes, well it's about time that people realised that just because an organisation is well known around the world and is huge, it does not mean that they are squeaky clean and necessarily honest in their financial dealings.
ReplyDeleteUnfortunately, people have been brainwashed into thinking that Banks and large financial institutions are honest and clean cut, if only.
Most of the frauds perpetrated within these organisations are successful because they have insiders who make sure that the dodgy deals go through without a hitch.
I mean look at how Enron collapsed as a prime example of corporate fraud, corruption and dodgy dealing inside a well known and once trusted organisation.
A lot of these upstanding banks are no different.