Doonesbury by Garry Trudeau for December 12, 1993
Transcript:
Student: (Darn...I don't know the answer...Guess I better cheat.) Student #2: Professor Milken, could you explain how stock "parking" works? Mike Milken: Gladly. If you'll refer to today's handout, you can see how the transaction works in detail... Basically, one party "sells" stock to another party with the understanding that they will buy it back at another time, assuming all risk. This arrangement allows the first party to disguise ownership in order to avoid net capital violations. Student #2: Wow... that's ingenious! Student #3: What a great financial instrument! Student #2: But isn't it illegal? Mike Milken: To act boldly is to incur risk, yes.
I worked for a bank that did exactly this. Bernie Madoff did them in.