Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Bernie Madoff Speaks Out on Dark Pools

Details

  • Description

    FBN's Adam Shapiro on Madoff's comments on insider-trading crackdowns.

  • Duration 3:11
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Bottom of the hour.

All the man behind the financial world's largest Ponzi scheme ever Bernie Madoff weighing in on recent efforts by regulators to crack down on insider trading dark pools.

And a lot more Adam Shapiro joins us now with deet tails you heard from mr.

-- -- -- off another exclusive for Fox Business Madoff -- talking about those specific issues and our deal with mister Madoff when we talk.

At least my deal with him -- I will quote you leave your entirety he gets really got upset when people he says -- -- As we go through this keep in mind it's coming from Bernie Madoff taken with a grain of salt.

What he's talking about is a different kind of arbitrage strategy -- merger arbitrage or whether it's like he did which was convertible arbitrage essentially.

Buying assets selling and buying assets and merger arbitrage for companies that are gonna be -- you're trying to take advantage of price differences in what he's saying.

Is the reason I chose to begin doing convertible arbitrage also known as risk -- arbitrage as opposed to merger arbitrage was because merger arbitrage.

Could only be executed successfully by having.

Inside information well who would have that.

People on the boards of directors and he goes on to say that most of the firms.

Practicing merger arbitrage -- the major banking firms that sat on the boards of the target companies firms such as Goldman Sachs Merrill Lynch and Morgan Stanley now again take this with a grain a -- it is Bernie Madoff.

He goes on to say what his changed recently and this is the insider trading stuff.

What is -- recently has been the decision by the SEC to prosecute one of Wall Street's worst kept secrets what he's upset about and what he's disclosed and other emails is -- going after the hedge funds and he wants them Bernie Madoff of all people want them to go after Goldman Sachs and Morgan Stanley and Merrill Lynch.

He goes on to talk about interrupt remember earlier this week the Wall Street Journal had the interview with mr.

catch -- the head -- -- about.

New regulations coming on dark pools and bonuses and he says quote Bernie Madoff it was nice to see that being raised getting around to dealing with the issue of Wall -- signing bonuses he goes on to say the real problem with signing bonuses is the pressure that the new firms put on their bonus babies to generate large commissions by promoting special products of the new firm to pay off those bonus costs and then finally.

On dark pools.

Wall Street Journal had a letter to the editor from Tom Joyce overnight capital defending.

Dark pools and the efficiency they bring to markets.

Madoff says although I have the utmost respect for -- Tom Joyce I find some fault with his letter in the Wall Street Journal supporting dark pools while both made off that was his market making firm and night provided liquidity.

And lower trading cost retail investors.

This is very different than the flickering quotes that are provided by high frequency trading firms.

Mister Madoff is not a fan of dark pools or frequency high frequency trading and in fact his Christmas Eve.

Email to us at Fox Business.

Later it all out is why he doesn't think this helps anybody -- from the word from the -- from the computer Bernie Madoff.

Now you've.

A very vocal Bernie Madoff lease on the keyboard eighty spoke to you then -- thank you very much out of very instinct from -- -- interesting because they got tired -- the entire -- on foxbusiness.com.

We've posted it in its entirety -- we kept -- -- as we always -- the more he talks the more interesting it is certainly.

Adam thank you very much great stuff from yeah.

Load More