Get the latest international news and world events from Asia, Europe, the Middle East, and more. See world news photos and videos at ABCNews. Bernard Madoff Wikipedia. Bernard Madoff. U. S. Department of Justice photograph, 2. Born. Bernard Lawrence Madoff1. April 2. 9, 1. 93. Queens, New York, U. S. Alma mater. Hofstra University. Occupation. Stock broker, investment adviser, financier, former chairman of NASDAQEmployer. Bernard L. Madoff Investment Securities. Known for. Ponzi scheme, chairman of NASDAQ priorCriminal charge. Securities fraud, investment advisor fraud, mail fraud, wire fraud, money laundering, false statements, perjury, making false filings with the SEC, theft from an employee benefit plan. Criminal penalty. Criminal status. Incarcerated at Butner Federal Correctional Institution Federal Bureau of Prisons Register 6. November 1. 4, 2. SpousesRuth Madoff m. Children. Mark Madoff 1. Andrew Madoff 1. ConvictionsMarch 1. Bernard Lawrence Bernie Madoff 1 born April 2. American fraudster and a former stockbroker, investment advisor, and financier. He is the former non executive chairman of the NASDAQ stock market,2 and the admitted operator of a Ponzi scheme that is considered the largest financial fraud in U. S. history. 3 Prosecutors estimated the size of the fraud to be 6. Find the latest business news on Wall Street, jobs and the economy, the housing market, personal finance and money investments and much more on ABC News. Pnk, Kids United and children around the world team up to remake What About Us UNICEF. TOKYO The Japan NewsANN Major convenience store chains are competing to develop nextgeneration stores that utilize such advanced technologies as electronic tags. Update Beat everyone to the real numbers for the second time in a row, Morgan Stanley cut by about 15 according to zerohedge and business insider. Heard it here. Madoffs 4,8. November 3. Madoff founded the Wall Street firm Bernard L. Madoff Investment Securities LLC in 1. December 1. 1, 2. The firm was one of the top market maker businesses on Wall Street,7 which bypassed specialist firms by directly executing orders over the counter from retail brokers. At the firm, he employed his brother Peter as senior managing director and chief compliance officer, Peters daughter Shana Madoff, as the firms rules and compliance officer and attorney, and his sons Andrew and Mark. Peter has since been sentenced to 1. Mark committed suicide by hanging exactly two years after his fathers arrest. Andrew died of lymphoma on September 3, 2. On December 1. 0, 2. Madoffs sons told authorities that their father had confessed to them that the asset management unit of his firm was a massive Ponzi scheme, and quoted him as describing it as one big lie. The following day, FBI agents arrested Madoff and charged him with one count of securities fraud. The U. S. Securities and Exchange Commission SEC had previously conducted multiple investigations into Madoffs business practices, but had not uncovered the massive fraud. On March 1. Madoff pleaded guilty to 1. Ponzi scheme. The Madoff investment scandal defrauded thousands of investors of billions of dollars. Madoff said he began the Ponzi scheme in the early 1. However, federal investigators believe the fraud began as early as the mid 1. Those charged with recovering the missing money believe the investment operation may never have been legitimate. The amount missing from client accounts, including fabricated gains, was almost 6. The Securities Investor Protection Corporation SIPC trustee estimated actual losses to investors of 1. On June 2. 9, 2. 00. Madoff was sentenced to 1. Early life. Madoff was born on April 2. Queens, New York, the son of Jewish parents Ralph Madoff June 1. July 1. 97. 2, a plumber and stockbroker, and Sylvia Muntner December 1. December 1. 97. 4. Madoffs grandparents were emigrants from Poland, Romania, and Austria. He is the second of three children his siblings are Sondra Weiner and Peter Madoff. Madoff graduated from Far Rockaway High School in 1. He attended the University of Alabama for one year, where he became a brother of the Tau Chapter of the Sigma Alpha Mu fraternity,3. Hofstra University in 1. Bachelor of Arts in political science. Madoff briefly attended Brooklyn Law School, but founded the Wall Street firm Bernard L. Madoff Investment Securities LLC and remained working for his own company. Career. Madoff was chairman of Bernard L. Madoff Investment Securities LLC from its startup in 1. December 1. 1, 2. The firm started as a penny stock trader with 5,0. Madoff earned from working as a lifeguard and sprinkler installer. He further secured a loan of 5. Bernard L. Madoff Investment Securities LLC. His business grew with the assistance of his father in law, accountant Saul Alpern, who referred a circle of friends and their families. Initially, the firm made markets quotedbid and ask prices via the National Quotation Bureaus Pink Sheets. In order to compete with firms that were members of the New York Stock Exchange trading on the stock exchanges floor, his firm began using innovative computer information technology to disseminate its quotes. After a trial run, the technology that the firm helped to develop became the NASDAQ. The firm functioned as a third market provider, bypassing exchange specialist firms by directly executing orders over the counter from retail brokers. At one point, Madoff Securities was the largest market maker at the NASDAQ, and in 2. Wall Street. 3. 9 The firm also had an investment management and advisory division, which it did not publicize, that was the focus of the fraud investigation. Madoff was the first prominent practitioner4. This has been called a legal kickback. Some academics have questioned the ethics of these payments. Madoff argued that these payments did not alter the price that the customer received. He viewed the payments as a normal business practice If your girlfriend goes to buy stockings at a supermarket, the racks that display those stockings are usually paid for by the company that manufactured the stockings. Order flow is an issue that attracted a lot of attention but is grossly overrated. Madoff was active in the National Association of Securities Dealers NASD, a self regulatory securities industry organization. He served as chairman of its board of directors, and was a member of its board of governors. Government access. From 1. 99. 1 to 2. Bernie and Ruth Madoff contributed about 2. Democratic Senatorial Campaign Committee. The Committee returned 1. Madoffs contributions to Irving Picard, the bankruptcy trustee who oversees all claims, and Senator Charles E. Schumer returned almost 3. Madoff and his relatives to the trustee. Senator Christopher J. Dodd donated 1,5. Elie Wiesel Foundation for Humanity, a Madoff victim. Members of the Madoff family have served as leaders of the Securities Industry and Financial Markets Association SIFMA, the primary securities industry organization. Bernard Madoff served on the board of directors of the Securities Industry Association, a precursor of SIFMA, and was chairman of its trading committee. He was a founding board member of the DTCC subsidiary in London, the International Securities Clearing Corporation. Madoffs brother Peter served two terms as a member of SIFMAs Board of Directors. He and Andrew received awards from SIFMA in 2. He resigned from the Board of Directors of SIFMA in December 2. Ponzi scheme broke. From 2. 00. 0 0. Madoffs brothers donated 5. SIFMA, and paid additional money as sponsors of industry meetings. Bernard Madoffs niece Shana Madoff was a member of the Executive Committee of SIFMAs Compliance Legal Division, but resigned shortly after the arrest. Madoffs name first came up in a fraud investigation in 1. SEC about investments they made with a firm called Avellino Bienes. Avellino returned the money to investors and the SEC closed the case. Investment Banking Modelling Test Ask. Ivy. Investment Banking Modelling Test Investment Banking Modelling Test. Investment bank will often require top notch Excel modelling skills whenthey hire analysts or associates from other investment banks or fromother professionals in the finance sector i. Part of those interviews almost always includes a full blown Excelmodelling test to be completed in a few hours to test your operationalmodelling and DCF modelling skills. What is an investment bank modelling test A modelling test is similar to a case study you are given assumptions, sometimes a brief description of the business, and then asked to perform some analysis. The most common test given is to a Discounted Cash Flow analysis DCF and Operational Modelling i. Sometimes you may be asked to build Merger models but this is less common. The models given are usually very complex with a very short time allowed for completion. The most common type of test will happen like this  You will be seated in a room alone with a laptop, with only Excel on it. You will be given some assumptions, either on a separate page, or in an Excel file saved on the laptop. Except for the assumptions and maybe some basic headings, the file will be totally blank. You will then be asked to build a model based on the assumptions within a specific time frame two to four hoursWhy do banks give modelling tests While many people can be good at interviews through extensive practice, you cant fake a modelling test. The investment banking modelling test is the ultimate test of your ability to be a good analyst or associate. A modelling test can help the investment bank test the following Ability to understand complex financial and accounting terms assumptions can often be complex and involve detailed tax treatments, industry jargon, etc. Ability to structure a model Ability to work fast and accurately under pressure Quality of your Excel modelling and ability to use appropriate and advanced formulas. Can you give me some tips for Investment Banking modelling tests Spend some time reading the assumptions first and understanding them all. After reading the assumptions, think about the structure of your model. Create the following tabs Assumptions, P L, Balance Sheet, Cash Flow, DCF and optionally WACCOnce you are clear about the structure, lay out all the assumptions on the Assumptions sheet so you can easily track and modify them. Start building out the forecast P L. Model down to EBITDA linking your assumptions, and leave the rest blank for now i. Go to the balance sheet model the fixed assets using the depreciation and Capex assumptions. Link back depreciation to the P L. Now its possible to have EBITDA in the P L. Model the debt using any assumptions about debt increase repayments. Based on the debt balances, you can model the interest expense on the P L using the interest rate assumptions. You now have EBT in the P L you can then model the tax and you are down to net earnings P L model complete Model all other balance sheet items but leave the cash balance blank. Go to cash flow. You should be able to build the cash flow from every balance sheet and P L items now. You end up with a cash figure for each year which you can use to link back to your balance sheet cash balance. Always make sure that the balance sheet balances Total Assets minus Total Liabilities  Total Equity. From there on, you have all the necessary items to build your DCF, which is very simple. If you have to estimate the WACC unlikely but may be required if all assumptions are given, do it on the separate tab and link this to your DCF assumptions. To make it perfect, add sensitivity tables in your DCF, showing different Enterprise Values for different WACCs, exit multiples, or perpetual growth values. You can also build some add on functions allowing for interest earned on cash, automatic overdrafts when cash balance is negative, etc., but this is not critical focus on the main assumptions first Do you have any investment banking modelling test exampleA standard DCF modelling test that you would get for an analyst level investment banking modelling test interview. You can also download the DCF modelling test. You would have four hours to complete this test. The answer to the DCF modelling test is also available. List of Competency Interview Questions. Investment Banking interviews typically start with a battery of questions about yourself. All those questions you will get in the investment banking interview have a single purpose and are trying to assess Adaptability, Analysis and Problem Solving, Commercial Awareness, Communication, Decision Making and Judgment, Influencing and Persuasiveness, Leadership, Motivation, Relationship Building and finally Teamwork. About Yourself. 1 Why did you choose to study economicschemistryhistory, etc. If you are from overseas, prepare to answer why you chose LondonMention all the positives about London and how it is a financial center, multicultural, etc. What are your strengths and weaknesses Good strengths include being a hard worker, analytical, curious, being a good communicator, a good team player, resistant to stress, dont give up easily. Good weaknesses can be being impatient, taking a lot of time to make decisions, because you always need a lot of information, being inexperienced in finance of course, that could describe all of the students, being a bad loser. Characteristics not to mention your intelligence, introversion, shyness, or individualism. Have you enjoyed your studyWhyAnswer must be Yes. What is the achievement you feel proud of or least proud of The best examples are where you had to make a lot of effort, either hard work or team achievement. You can use sports, major study projects, or personal travel. The least proud achievements can be any kind of failure, but you need to show that you have learnt from that failure. What would your teachers or other students describe about youSee strengths and weaknesses. Give me an example of an important goal, which you have set and tell me how you reached it. What steps did you take What obstacles did you encounter How did you overcome the obstaclesMention what your learned from this and how you improved. Tell me about a goal that you set that you did not reach. What steps did you takeWhat obstacles did you encounter How did it make you feelAgain, mention what you learned from this and how you improved. Give me an example of instances in which you made mistakes and what you learned from them. What courses have you liked most Least Why 1. Why did you select your university Dont say, It was the best Just mention classes, location, extra curricular clubs, etc. What do you do in your spare timeWhat would you most like me to know that is not in your resume Answer can be that you grew up in an interesting place or an interesting experience you had. How competitive are you Dont say Im extremely competitive. Just add examples saying that you enjoy participating competitive activities such as sports, events, etc. Microsoft Publisher 2013 Avery Templates more. Tell me about the time you worked the hardest in your life. Motivation. 1 Why investment bankinglt Please see our article on this specific question.