jul 25, 1962 - The Launch of Bernard L. Madoff Securities

Description:

After graduating from Hofstra College -- and one year after marrying his high school sweetheart Ruth Alpern -- Madoff starts his business with $5,000 saved from odd jobs, including lifeguarding and sprinkler installations. He works out of Ruth's father's accounting firm in midtown Manhattan.

He plans to make money as a market maker -- matching buyers and sellers who want to trade smaller stocks listed on the big exchanges.

"In those days, with over-the-counter stocks [there was] no automation," Madoff recalled in 2007. "So you would call a broker; the broker would call up … any number of dealers like myself. … We would negotiate over the telephone."

"Wall Street then was a very different world than it is now," explains New York Times reporter Diana Henriques. "… It was a very, what they call the white-shoe world. … And then down below were small, unlisted stocks traded; it was really a free-for-all. Small firms could get started with a little stake, trade unlisted stocks of sometimes reputable, sometimes not-such-reputable quality and make a living at it if they had good instincts as traders."

Added to timeline:

Date:

Images: