How could Madoff have made no trades for so long without a single regulatory agency discovering the scam? It is not credible that this was due simply to incompetence or ideological blinders.
There is much more to his canny trick of rejecting investors than initially meets the eye. In reality, he did not really turn away money from investors. What actually occurred was that he refused to take cash from people whose participation would have easily revealed the fraud.
Madoff apparently refused money that would be put in custodial accounts where the transactions would be watched by others.
Separately, we’ve also talked with someone with knowledge of the exchange, that nobody could be found on the CBOE floor between ’04-’06 to have executed trades for Madoff.
No trades. And no one in the federal government knew? My take: Anyone in government charged with regulating Madoff needs to be investigated.