Madoff criticizes, 180
negligence and, 78, 267
order flow controversy and, 87
reform of, post-2008, 241–42
Renaissance Technologies, 140–43, 157
Reserve fund, 195
Retirement Accounts Inc, 127
retirement savings, 172–73, 342–44
retrocession fees, 171
Richards, Lee S., III, 21–23, 222–23, 239
Richards, Lori, 140, 142, 145–46
Richmond Fairfield Associates, 147
Rockefeller, David, 174
Rogers, Casey & Barksdale, 130
Rogerscasey Inc, 132, 141
Ross, Burt, 276
Roth, Eric, 212
Rothko, Mark, 113
Rothschild et Cie, 170
Rye funds, 130–31
Sage, Maurice, 63, 65
Salomon Brothers, 71
Salomon Smith Barney, 118
Samuels, Andrew Ross, 293
Santa Clara fund, 169, 172
Sarbanes, Paul, 122
savings and loans crisis, 53
Schama, Simon, 213
Schapiro, Mary, 228–29, 241, 301–3, 326–27
Schlichter, Arthur, 63
Schulman, Robert I., 131
Schwartz, Michael, 276
Second Circuit Court of Appeals, 309, 324
Securities and Exchange Commission (SEC), 10, 31
Barron’s article and, 121–22
Chais and, 58, 301
Cohmad and, 300–301
deregulation and, 78–79
failure of, and reform post-2008, 240–42, 301–4, 311, 326–27
failure of, in Madoff case, 210, 227–30, 266, 296, 345
financial crisis of 2008 and, 196, 228–29
fixed commissions and, 66
Friehling and, 255, 301
hedge funds and, 126, 142, 172
investigation by, after Madoff confession, 17, 228, 239, 241, 245, 270–72
investigation of 1992, 94–102, 132, 272, 335
investigation of 2001–4, 138, 140, 145–46
investigation of 2005, 139–46, 151
Joel suspended by, 43
Kotz report of 2009, 302–4
Madoff arrest and, 17–18, 22, 224, 275
Madoff critique of, 180
Madoff employees charged by, 297–98, 310
Madoff family not charged by, 286, 293
Madoff sons report father to, 10, 12, 14
Madoff victims and, 220, 222, 236, 239, 264, 267–68, 303–4
Markopolos and, 122–25, 142–43, 153–57, 162, 227
NASD and, 86
Office of Compliance Inspections and Examinations, 121
OTC and, 45–46
regulations of 1970s, 42, 79
Shana Madoff’s husband and, 179
Securities Industry Association, 80
Securities Investor Protection Act (1970), 234, 262, 308
Securities Investor Protection Corporation (SIPC), 44
cash advances by, 220, 222, 260, 306–8
creditor meetings and, 244
indirect investors and, 235, 304–5, 325–26
legal expenses and, 246, 311
Madoff case taken by, 220–22, 224
net equity dispute and, 235–36, 242, 255, 259–66, 268, 307, 324–25
Picard assigned as trustee by, 216–18
Picower settlement and, 328–30
reform of, 311, 325–27
Sedgwick, Kyra, 212
September 11, 2001, attacks, 90, 125, 265
Shad, John, 79–80, 86, 96
Shapiro, Carl, 4, 61–62, 72–74, 84, 86, 92, 100–101, 137, 152, 158, 183–84, 205, 307, 335
philanthropy and, 62, 340
settlement by, 320
Shapiro, Ellen, 72–73
Shapiro, Ruth, 137
Shearson Lehman Hutton, 108
Sheehan, David J., 217–19, 222, 237, 239–40, 244, 258, 263–64, 267, 269, 294, 307–8, 311–16, 318–20, 328–30
Shopwell chain, 65
short sales, 30, 196
Siegman, Miriam, 276–77, 298
Simons, Nat, 141
Singapore, 171, 212
Smith Barney, 131
Sonar report, 322
Sorkin, Ira Lee “Ike,” 1–2, 6–7, 15–17, 20, 96–98, 101, 224, 238, 242–43, 248–51, 270, 273, 275, 277, 279
Sorkin, Nathan, 242, 248
Sorkin, Rosalie, 242, 248
Soros, George, xxiii, 60
sovereign immunity principle, 303–4
Soviet Union, former, 169
S&P 500, 83, 94, 118, 123, 176, 204, 296
Spain, 1, 239, 245
Spielberg, Steven, 212, 215, 340
Spitzer, Eliot, 241
split-strike conversion strategy, 75–77, 83–85, 112, 115, 117–18, 192, 196, 199, 271
size constraints and, 93, 106, 128
Sporkin, Stanley, 79
spread, defined, 45
Squadron, Howard, 88–89, 96, 242
Squillari, Eleanor, 3, 6–8, 11–14, 161
stagflation, 52
Stanton, Louis L., 22, 222, 300
Steinhardt, Michael, 25–26
Sterling Stamos fund, 148
stock market. See also specific exchanges
bear, of 1970s, 52–53, 93, 104, 130
bull, of 1949–61, 25, 42, 93
bull, of 1960s, 24–25, 35, 42
bull, of 1980s, 68, 78, 80–81, 88–89
crash of 1987, xxiii, 83–84, 90, 93, 133, 335
crash of 2008, 186, 194–95
early regulation of, 35–36
paper crunch and automation of, 42–51, 62, 68, 86, 116
stock option, defined, 75–76
subordinated lending theory, 128–29
Suh, Simona, 162, 163
suitability rule, 28
Sullivan, Richard J., 297–99
Swanson, Eric, 179, 237, 302
Swiss banks, xxiii, 212
Switzerland, 245, 299
Tampax company, 25
taxes, xxiii, 64, 74–75, 80, 85, 283, 301, 311
Technion-Israel Institute of Technology, 257
tech-stock bubble, 24–25, 27, 116, 172–73, 176
Teicher, Victor, 111–13
Telfran Associates, 98, 102
Temple Israel (Minneapolis), 67
Thema funds, 168
third market, 49, 82, 108
Thomajan, Mary, 231–32
Thomsen, Linda Chatman, 241
Toub, Alix Noel, 108
Toub, Philip J., 108–9
Town & Country, 109
Treasury bills, 53, 195–96
Treasury Department, 52, 194–96
Tremont Partners, 130–32, 146, 158, 175, 211, 319
Tucker, Jeffrey, 2–3, 11, 89–91, 104–6, 108–10, 119–20, 151, 158, 174, 199, 257
Tufts University, 114
UBS, 170, 211, 301, 318
UJA-Federation of New York, 114
unemployment, 78, 266
Unicredit holding company, 169, 171
Union Bancaire Privée (UBP), 168–69, 171, 320
United States of America v. Bernard L. Madoff, 19
U.S. Attorney’s Office, 10, 15, 18, 223–27, 301, 311–12, 328–29
U.S. Congress, 44, 79, 121–22, 172, 219, 220, 300, 311, 324–27
House Financial Services Committee hearings, 240–42, 265–69
U.S. Marshals Service, 239, 280–81, 305, 316
Velvel, Lawrence R., 263
Vietnam War, 52
Vijayvergiya, Amit, 192–93, 195–96, 199, 201–2
Wall Street (film), 133
Wall Street Journal, 83, 101, 156, 227, 237, 242, 280–81
Ward, Grant, 123–24
warrant arbitrage, 39
Weinstein, Sheryl, 277, 288–89
Weizmann I
nstitute of Science, 257
“when issued” market, 39
Wiener, Charlie, 135
Wiesel, Elie, 114, 213, 339
Wilke, John, 156
Wilpon, Fred, 3–4, 212, 319, 340
Wilpon family, 88, 148, 307, 319
Windsor IBC, 167
Wing, John R. “Rusty,” 293
Wolfe, Mauro, 17, 250
“World’s Largest Hedge Fund Is a Fraud, The” (Markopolos), 153–54
World Trade Center, 125
Yeshiva University, 111, 114, 214, 215
Zabel, William D., 306, 311–12, 329
Zarb, Frank G., 178
Zuckerman, Mort, 212
ABOUT THE AUTHOR
DIANA B. HENRIQUES is the author of The White Sharks of Wall Street and Fidelity’s World. She is a senior financial writer for The New York Times, having joined the Times staff in 1989, and has won several awards for her work. She was coverage of the financial crisis of 2008 and has led the part of the team recognized as a Pulitzer finalist for its Times’s coverage of the Madoff scandal. She lives in Hoboken, New Jersey.