' In 2008, Madoff pleaded guilty to orchestrating the Ponzi scheme, in which instead of investing cash, he paid off older investors with funds from new investors"
____
"An additional $14.7bn has been recouped for customers of the former Bernard L Madoff Investment Securities LLC
by Irving Picard, the trustee liquidating that firm after its bankruptcy in 2008.
This means about $19bn has been paid out to Madoff victims overall.
The fund was created mainly from settlements between the Justice Department and
Madoff’s former bank JP Morgan Chase,
and between the liquidator of Madoff’s former firm and the estate of the former Madoff investor Jeffry Picower.
It had $4.05bn at the beginning, but grew because the Justice Department recovered more assets.
Madoff’s fraud was
estimated as high as $64.8 billion freaking bucks.
The global financial crisis of 2008 prompted the scheme to unravel, leaving thousands of victims bereft of their savings.
In December 2008, as investors worried about the impending crisis started asked for their money back, Madoff called a family meeting at his Manhattan apartment, and confessed to his sons that
the family business they both worked in was based on “one big lie”.
,"We thought he was God; we trusted everything in his hands,” Elie Wiesel, the late Holocaust survivor and Nobel laureate, said in 2009. Madoff’s scam cost Wiesel’s foundation $15.2m."
"MVF's distributions offset one of the most monstrous financial crimes ever committed," said Richard C Breeden, who runs the MVF.
Mr Breeden is a former chairman of the US financial regulator, the Securities and Exchange Commission (SEC).
"We have brought tens of thousands of victims to the greatest recovery we could achieve," he added.
Madoff's victims were a mixture of wealthy individuals, less well-off people and companies - both large and small - as well as schools, charities and pension funds.
The MFV estimates it will have recovered nearly 94% of the victims' proven losses when
it completes its mission in 2025."
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"Another $14.7bn has been returned through bankruptcy proceedings to Madoff customers.
Madoff's investment firm collapsed during the 2008 financial crisis.
Set up in 1960, Bernard L Madoff Investment Securities became one of Wall Street's largest market-makers - matching buyers and sellers of stocks - and Madoff served as
chairman of the Nasdaq stock trading platform."
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"A wash sale
occurs when an investor sells a security at a loss and then buys a similar security within 30 days:
What it is
The wash-sale rule prevents investors from deducting capital losses as taxes if they reenter a similar position too quickly.
What it applies to
The wash-sale rule applies to stocks, bonds, mutual funds, ETFs, options, futures, and warrants.
What it doesn't apply to
The wash-sale rule does not apply to cryptocurrency.
What happens
When a wash sale occurs, the loss is added to the cost basis of the new investment, and the holding period of the sold investment is added to the new investment's holding period"
"In the United Kingdom, a similar practice which specifically takes place at the end of a calendar year is known as bed and breakfasting.
In a bed-and-breakfasting transaction, a position is sold on the last trading day of the year (typically late in the trading session) to establish a tax loss.
The same position is then repurchased early on the first session of the new trading year, to restore the position (albeit at a lower cost basis).
The term, therefore, derives its name from the late sale and early morning repurchase"
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