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Comment by pclmulqdq | Hacker News Reader

She is also VERY well connected to the SEC. It wouldn't surprise me if they gave her a sweetheart deal.

Bernie Madoff sat on SEC advisory committees and was the onetime chairman of Nasdaq.

Madoff's scam was so baffling because his contributions to finance before that were legendary. He practically invented modern market making but his firm and others following in his footstep were wiped out by HFTs.

I think they were gradually decimated due to shrinking margins but that was partly due to decimalization, Reg NMS and other market structural reforms / changes. Then HFTs stared to flourish which drove the older market makers out of the picture.

Madoff practically invented modern market-making? Do you have a citation for that? I’ve certainly never heard that claim before.

https://news.fintechnexus.com/payment-for-order-flow-bernie-...

Is one of many articles on the topic. I had an old textbook (maybe 2003) textbook on markets and trading that had a sidebar that lionized him but almost everything on the web is colored by his scam.

He gave up

The SEC is not an enforcement agency and thus cannot give "sweetheart deals".

I know her parents would have been colleagues of SEC Chair Gary Gensler when he was still at MIT, that's a large faculty though. Is there evidence that they were more than just colleagues though?

They were known to be friends while they both worked at MIT, and both were economics professors in the same sub-field, which makes it very unlikely that they didn't speak to each other.

I just learned that people have been theorizing on the internet that Caroline Ellison is Gary Gensler's daughter, which is completely nuts and totally false.

There isn't. Loony conspiracies need to be banned here.

The theory of six degrees of separation states that everything and everyone are no more than six steps away from being introduced to anyone.

That may have been revised down to 3 from 6...

That number is 2. Ellison's dad was known to be friendly with Gensler when they were on the faculty in MIT's economics department together.

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