Up until now, the general assumption has been that Bernard Madoff's scam investment business was run separately from his "legitimate" broker dealer. But Erin Arvedlund's Madoff: The Man Who Stole $65 Billion, out this week, suggests that may not be the case.

There was a lot of financial back and forth between accounts controlled by each. Madoff also had a close relationship with a Bear Stearns senior MD. One result--when it came to the National Stock Exchange, in which Madoff held a stake--Bear Stearns trades defaulted to Madoff's market making firm, which might have made terms on trades impossible.

One more revelation: Madoff did a lot of business with JPMorgan Chase, which eventually grew suspicious of Madoff and eventually ceased business with one of his feeder funds, but it kept him on as a customer. The book suggests Chase should have been on to the fraud. Meanwhile, Madoff's penthouse is up for sale. 

For more:
- here's an item in the Financial Times

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