Madoff Case Could Mean Scrutiny of Banks He Transacted With, Says Financial Investigator

By Brian Monroe

The investigation into a $50 billion securities fraud by a former chairman of the Nasdaq stock market may mean more scrutiny for banks that took him as a client, according to a financial investigator. Bernard Madoff, founder of New York-based Madoff investment Securities LLC and manager of an affiliated investment advisory firm, was arrested Thursday for allegedly running a "Ponzi scheme" that could rank as one of the largest fraud cases ever, according to authorities. The scheme by Madoff, who used money from old investors to pay returns to new ones, has raised questions about the exposure of several global...