Daniel Bonventre (Bloomberg)
According to Bloomberg,
A former JPMorgan Chase & Co. (JPM) banker who managed Bernard Madoff’s account said the con man was on track to receive a $200 million loan less than a month before his arrest if the request hadn’t been dropped.
Daniel Bonventre, one of five ex-Madoff employees on trial for allegedly aiding the fraud, asked JPMorgan in November 2008 to borrow twice Madoff’s credit limit of $100 million, with U.S. Treasuries as collateral, Mark Doctoroff, who left the bank last year, testified yesterday in federal court in Manhattan.
“They are doing well financially,” Doctoroff said of Madoff’s securities firm in an e-mail to JPMorgan’s credit department on Nov. 17, 2008. “They are looking at the current market as an opportunity to make investments, true to their value investing style.”
The five former employees are accused of helping Madoff hide his fraud from customers, banks and regulators for years, and getting rich in the process. It’s the first criminal trial stemming from the scheme, which prosecutors say started in the early 1970s and imploded at the peak of the financial crisis.
The loan was part of a last-ditch attempt by Madoff to secure cash as his Ponzi scheme was collapsing and Bonventre’s role in the application process was one of the many examples of his involvement in the fraud, prosecutors have said.
Doctoroff, who was Madoff’s relationship manager at the bank from about February 2008 until Madoff’s arrest in December that year, said he didn’t know at the time Madoff had a formal investment advisory unit — the center of the Ponzi scheme involving fake trades — or that Madoff’s JPMorgan account was used for that business.
Posted in Economy, Equity Markets, Events, Finance, New York
Tagged Bernard Madoff, Daniel Bonventre, Economy, equity, financial markets, investment, investment bank, JP Morgan, JPMorgan, Manhattan, Modern Finance Report, Private Equity
Why 99.95% Of Entrepreneurs Should Stop Wasting Time Seeking Venture Capital
It is difficult to pick up a major business publication today without reading about venture capitalists (VCs, defined as professionally-managed VC limited partnerships that invest in early-stage ventures), about their skills in finding great investment opportunities, and about the ventures they fund. And lately in states like Minnesota, it is also about how they can create jobs if the governor would speak favorably about the need for VC and offer some state pension money for them to invest. And since we all like to talk about our successes, the stories are about how entrepreneurs secured VC and soared to wealth in a very short time via an IPO or a strategic sale. This can lead other entrepreneurs to think that this is the only model for success, that there is no other way to build a major company, and that they should write business plans, attend VC conferences, seek VC, and give VCs control of their venture.
Posted in Finance, Opinion, Research, Venture Capita;, Venture Capital
Tagged Business, Entrepreneur, Financial Services, Initial public offering, investment, Minnesota, Venture Capital, Victoria Cross
SEC lifts ban on hedge fund ads
Hedge funds and other firms that seek private investments will be allowed to advertise publicly for the first time under a rule adopted Wednesday by the Securities and Exchange Commission.
Adopted by a 4-1 vote, the rule eliminates an 80-year regime of advertising restrictions intended to safeguard small investors from taking on potentially dangerous risk. The rule covers the way issuers raise funds through private offerings, a process that is exempt from requirements to report public financial statements.
While the rule would authorize firms to raise unlimited amounts via mass advertising of private offerings, it would require reasonable steps to ensure that buyers are so-called accredited investors — who are wealthier and deemed better able to gauge investment risks.
Posted in Breaking news, Events, Finance, Hedge Funds, Regulation
Tagged advertising restrictions, ban, Hedge Funds, investment, investors, private investments, regulation
U.S. Venture Capital Investment Amounts Doubled In Q2, As Bay Area Companies Raised More Than NYC, LA, Boston Combined
Total new capital invested in the United States tech industry rose from $1.9 billion in April to $3.8 billion in June, a 100 percent increase in two months, according to quarterly data from CrunchBase. The data, which is specific to the United States, breaks down new venture capital raised by round type, investor, company, geography and more.
In the second quarter of 2013, $9.2 billion was invested in over 1,347 rounds. The rounds break down to 500 angel rounds, 306 Series A, 109 Series B, 102 Series C and later, and 330 unattributed rounds. This data set doesn’t include some investments, such as private equity and post-IPO investments, and thus is lower than the total funding for the quarter.
The San Francisco Bay Area still dominates other regions, as companies in the Bay Area raised more capital in Q2 than Boston, New York, and Los Angeles, the next three regions in total capital raised, combined.
Posted in Economy, Finance, Venture Capita;, Venture Capital
Tagged Boston New York, CrunchBase, investment, Los Angeles, San Francisco Bay Area, Series A round, United States, Venture Capital