Many people think that Bernard Madoff had stolen $65 billion. He is also considered the greatest villain of our time. Madoff’s name was heard from every TV or radio channel. Some think that such big money could have changed the person and make him run away to Brazil. But there are people, who do not agree with such an opinion.
There are many questions as well as points of view. Is Bernie Madoff a villain? As for me, I think that he is not. Probably, Madoff appeared in a prison not only because of money. His wife got just one or two millions, and his son committed suicide.
First of all, the facts should be considered. There existed a thought that Bernie Madoff has created the largest private scheme-pyramid, which involved about 65 billion of dollars.
The roots of this entire story are in creation of NASDAQ. It was the greatest exchange stock of technological actives. Madoff headed it for some time. He belonged to the ruling circles. Probably, in the 60th and 70th, he was not connected with an illegal business. However, the situation has changed as well as Madoff himself.
As I think, Avellino & Bienes did not violate ethical and legal rules. My opinion is based on that fact that when the company went into liquidation in 1992 (Naphin & Textor, 2010), the Securities and Exchange Commission accused the organization of creation of a finncial pyramid. In the course of investigation, it was found out that the company transferred money to Madoff. However, instead of company’s liquidation, it was authorized by investors to change the Avellino and Barnes’s actives for Madoff’s activities. Therefore, they rushed from one pyramid to another. A great majority of people understood that though Madoff was obviously connected with Avellino & Bienes, no investigations of Madoff’s business were carrying out.
In 1999, Harry Markopolos’ main aim was to reveal how Madoff had earned such high incomes. Later, Markopoulos came to conclusion that Madoff was a swindler.
Who are the stakeholders and how were they impacted? This question is answered when studying the eyewitnesses’ interviews. They sign that inspector tried to inform the SEC and the public on Madoff’s swindle but in vain (Frontline, 2009). There exists a thought that the company’s leaders knew about Madoff’s swindle. So they can be the main stakeholders of this story.
At last, in 2006, the SEC began investigation. Madoff lied during investigation and it could lead to five years of imprisonment. However, the SEC decided to ignore this fact and only compelled him to be registered as an adviser concerning investments. However, thanks to this, the SEC received payment for the rendered services (A+E Networks, 2013). It did not remain light-handed. In 2007, it was concludded by the SEC that there was no swindle. Again facts point on SEC as a stakeholder of this affair.
Should the government have intervened? Why or why not? The answer is in an unsuccessful control from the government. The matter is that SEC, being the governmental organization, had not only carried out the problem, but even had helped Madoff to keep the financial pyramid in 1992 and to confirm its legality in 2007. Therefore, it intervened, but in its own way.
It is logically to assume that people subjected to be controlled by the state are the basic lobbyists influencing the work of these bodies. On the contrary, usual citizens may not be interested in the work of such supervising bodies as they do not play a big role in their lives.
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This story has destroying implications for free market capitalism. As a capitalism basis is the capital, which simple people put in another’s business, Madoff’s story undermined the trust to such business. People began to concern that the best investments were made not in companies but in their own needs. So economy has lost much support.
In conclusion, it must be said that investor is the only person capable to supervise effectively the investment. If investors trusted the SEC less, its financial pyramid would fail much earlier and they would lose much less money. Capitalism still suffers from the blow of 2008. Therefore, Madoff was only the top of the iceberg.