Madoff Hasn’t Made A Trade In Years — Feds


Investigators are getting closer to figuring out what the hell went on on the 17th Floor of Bernie Madoff Central. A whole lot of nothing, it seems (other than passing money between investors and printing up bogus account statements).

WSJ: A person familiar with the situation said investigators believe Mr. Madoff initially had a trading strategy that failed, and that he had made very few, if any, stock or options trades for clients in many years. Instead, the operation consisted of taking money in from new clients and paying it out to existing clients, the person said.

Over the past year or so, as institutional investors and other wealthy clients were getting bruised by a sharp downturn in the stock market, the amount of redemptions probably rose too quickly to sustain the operation, that person said.

Which begs a few more questions: Did he steal the money? Did he dump it into the brokerage operation? Did he use it to make trades for his own account?  Did he just keep it in T-bills?