Report: Ex-Merrill execs exposed to Madoff
Former Merrill Lynch & Co. Inc. chief executives Dan Tully and David Komansky were invested in Bernard Madoff's hedge fund through feeder funds run by John Steffens, a former head of retail at the New York firm, according to The Wall Street Journal.
Former Merrill Lynch & Co. Inc. chief executives Dan Tully and David Komansky were invested in Bernard Madoff’s hedge fund through feeder funds run by John Steffens, a former head of retail at the New York firm, according to The Wall Street Journal.
The paper reported that the fund of funds run by Mr. Steffens, with $800 million in assets, may have had between 4% to 7% of assets invested in Madoff’s allegedly fraudulent operation.
Mr. Steffens, who left the firm in June 2001 to start his hedge fund, told the paper that his hedge funds had nevertheless outperformed the stock market indexes despite exposure to the Madoff fraud.
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