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...essence of my scheme was that I represented to clients and prospective clients who wished to open investment advisory and individual trading accounts with me that I would invest their money in shares of common stock, options and other securities of large well-known corporations, and upon request, would return to them their profits and principal. Those representations were false because for many years up and until I was arrested on December 11, 2008, I never invested those funds in the securities, as I had promised. Instead, those funds were deposited in a bank account at Chase Manhattan Bank. When...

Author: /time Magazine | Title: Bernard Madoff's Full Statement to U.S. District Court | 3/12/2009 | See Source »

Through the split-strike conversion strategy, I promised to clients and prospective clients that client funds would be invested in a basket of common stocks within the Standard & Poor's 100 Index, a collection of the 100 largest publicly traded companies in terms of their market capitalization. I promised that I would select a basket of stocks that would closely mimic the price movements of the Standard & Poor's 100 Index. I promised that I would opportunistically time these purchases and would be out of the market intermittently, investing client funds during these periods in United States Government-issued securities...

Author: /time Magazine | Title: Bernard Madoff's Full Statement to U.S. District Court | 3/12/2009 | See Source »

...markets. Indeed, when the United States Securities and Exchange Commission asked me to testify as part of an investigation they were conducting about my investment advisory business, I knowingly gave false testimony under oath to the staff of the SEC on May 19, 2006 that I executed trades of common stock on behalf of my investment advisory clients and that I purchased and sold the equities that were part of my investment strategy in European markets. In that session with the SEC, which took place here in Manhattan, New York, I also knowingly gave false testimony under oath that...

Author: /time Magazine | Title: Bernard Madoff's Full Statement to U.S. District Court | 3/12/2009 | See Source »

...respondents said they would outright lie or exaggerate to keep their jobs - even though such behavior is forbidden by many companies' ethics policies. About 2% said they would take credit for someone else's work or flirt with the boss to get ahead, and 4% would lie about having common interests with their boss to deepen their bond with a superior. "The negative responses were surprisingly high," says Kenny. "People are very frightened of losing their job, and they become threatened. People make extensive plans for Christmas, for vacations, weddings and holidays, but they put very little planning into their...

Author: /time Magazine | Title: Lie, Cheat, Flirt. What People Will Do to Keep a Job | 3/12/2009 | See Source »

...banks, bond investors ought to be the ones who enforce it by withholding their cash from the bad apples - and paying the price for misjudgments. Plus, a few concessions from creditors could ease the burden on taxpayers dramatically. If Citi's $486 billion in wholesale debt were converted into common shares - admittedly a pretty extreme solution - the company's balance-sheet woes would evaporate. Which is why these arguments have been gaining in popularity. "I think it's very important that the creditors in this crisis take a hit," said New York University finance professor Matthew Richardson...

Author: /time Magazine | Title: The Great Bond Bailout | 3/12/2009 | See Source »

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