Bernard Madoff and the Largest Financial Scam in History
Class Assignment
1. Why in your opinion did Bernard Madoff do this? He had been exceedingly successful in the electronic exchange trading that he had started and his firm continued, and he had clearly achieved both wealth and stature. What was it that drove him, again in your view, “off the cliff”? What does this say about the human character? What does this say about the nature and/or culture of the investment community?
After reading the case study, I am so astonished that why did Bernard Madoff does it. He was a chairman of the National Association of Securities Dealers Automated Quotations. He had been an exceedingly successful businessman and had become very renowned in the financial world and a prosperous receiver of stock trading profit. He can just continue working on his company, but he decided to scam. What the reasons that drive him to destroy his morality were?
In my opinion, because of the voracious of being human, the money and self-interest must be the …show more content…
It is difficult to isolate fraud from investing. As in Madoff's case, even experts or multinational funds were fooled by the planning and concealment. However, careful handling can be done in many ways, for example, 1) Be careful of time-limited investment. Shamans often offer good deals. At the same time, it will add pressure by saying "This offer is available only at this time" so as not to be able to find out more information. Finding information will reduce the risk, rather than jumping on the opportunity to look good without thinking at all. 2) Be cautious about investing. Do not believe in “there is no risk in investment” and “get high return” because all investment has a risk, we need to understand and accept this point. 3) Pay attention to the investment. As seen in the case of Madoff. Conviction does not always require a good return. Just reputation and credibility is
Class Assignment
1. Why in your opinion did Bernard Madoff do this? He had been exceedingly successful in the electronic exchange trading that he had started and his firm continued, and he had clearly achieved both wealth and stature. What was it that drove him, again in your view, “off the cliff”? What does this say about the human character? What does this say about the nature and/or culture of the investment community?
After reading the case study, I am so astonished that why did Bernard Madoff does it. He was a chairman of the National Association of Securities Dealers Automated Quotations. He had been an exceedingly successful businessman and had become very renowned in the financial world and a prosperous receiver of stock trading profit. He can just continue working on his company, but he decided to scam. What the reasons that drive him to destroy his morality were?
In my opinion, because of the voracious of being human, the money and self-interest must be the …show more content…
It is difficult to isolate fraud from investing. As in Madoff's case, even experts or multinational funds were fooled by the planning and concealment. However, careful handling can be done in many ways, for example, 1) Be careful of time-limited investment. Shamans often offer good deals. At the same time, it will add pressure by saying "This offer is available only at this time" so as not to be able to find out more information. Finding information will reduce the risk, rather than jumping on the opportunity to look good without thinking at all. 2) Be cautious about investing. Do not believe in “there is no risk in investment” and “get high return” because all investment has a risk, we need to understand and accept this point. 3) Pay attention to the investment. As seen in the case of Madoff. Conviction does not always require a good return. Just reputation and credibility is