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He was also good at making insider loans that were never repaid.
Besides being generous with insider loans, Mr. Madoff also manages much of the money his relatives and other senior employees have saved: their deferred compensation and retirement savings.
It's easy to get boggled by the details of corporate scandal -- insider loans, stock options, special-purpose entities, mark-to-market, round-tripping.
Insider loans, corporate governance experts say, often end up as another form of pay that insulates executives from risk, instead of rewarding them only for success.
But this loan to Peter — like all the insider loans that have come before and that will follow in succeeding months — is sucking out cash that Bernie Madoff will need when the turmoil bearing down on Wall Street finally hits.
At their best -- when they are not too large and when the terms are not too favorable -- insider loans offer a neat solution to the problem of aligning the interests of managers and shareholders, pay consultants say.
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At most big firms these days, an executive's request for a $9 million insider loan with a gentle interest rate would be coldly and firmly denied as inappropriate.
Not the SEC, which had sniffed him out as early as 1976 at the first company he ran, American Financial Corporation, for a dodgy insider loan worth $14m.
Bethesda-based Eagle Bancorparent parent company of EagleBank, pushed back Monday against claims it engaged in an insider loan scheme involving its CEO that sent its stock plunging Friday afternoon.
Who is Michel Cohen and why would such prominent art world insiders loan him so much money?
This week, police raided the bank's offices as part of an investigation into a murky web of insider dealings and undisclosed loans that has infuriated the public.
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