Question

Who were the three different stakeholder groups who were heavily impacted by Madoff and explain why?

In less than 150 words

I may use individual names that have been impacted within the group. However, provide the name of the group and then the individuals name in any way.

Answer 1

The major stakeholders involved and affected by Madoff's scheme and scandal includes

• the investors; who lose trust and confidence in investment companies,
• thegovernment; perceiving the regulation that governs the industries as ineffective,
• security industry; where investors feel unsafe and unprotected going into investment.

It is easily understanding financial fraud that tricked investors billions of dollars, not just because of the golden reputation of Madoff and the greediness of investors for 'high return', but mainly because of the lack of regulation of the financial markets. Even Madoff said, he could have been caught in 2003, but the investigators of the Securities and Exchange Commission (SEC) overlooked the problems

Some of the key stakeholers and big names involved are as given below.

Bank Santander ($3.1 billion), Bank Medici ($2.1 billion), HSBC ($ 1 billion) and Korea Life Insurance ( $ 50 billion)

Tremount Group ( $3.3 billion), Ascot Partners ($1.8 billion), the world's largest sovereign wealth fund Abu Dhabi Investment Authority ($400 million)

the biggest loser in the whole case, Fairfield Greenwich Group ($ 7.5 billion) which worked with Madoff's company for 20 years.

Elie Wiesel Foundation and Charities for Humanity ($ 15.2 million) has been an investor since at least 1998 and nearly all of its assets were in Madoff's fund.

Picower Foundation ($958 million), the largest foundation that has announced its closure due to Madoff's fraud, had its founder Jeffry Picower (a noted philanthropist) found dead at the bottom of his own swimming pool in October, 2009 (Bloomberg, 2009).

Universities like Yeshiva University and Tufts University lost $120 million in total.