Yeshiva U. Still Reeling From $100m Loss in Madoff Scandal

Moody's Investors Service cuts the school's rating to junk, Bloomberg News reports.

new-hdc-logo
Haaretz
Send in e-mailSend in e-mail
new-hdc-logo
Haaretz

More than five years after financier Bernard Madoff was arrested for masterminding the largest Ponzi scheme in United States history, Yeshiva University continues to reel from its $100 million loss, Bloomberg News reported on Wednesday.

According to Bloomberg, the New York-based university has warned its budget deficits may get worse, and it failed to produce a financial report on time for the year ending June 30, 2013 – prompting Moody’s Investors Service to cut the school's rating to B1 this month.

That makes Yeshiva "the only university with an endowment of more than $1 billion that [Moody's] ranks as junk," Bloomberg noted, adding that Yeshiva’s mark in 2008, prior to the Madoff scandal, was the third-highest grade.

Moody's said that the university has had trouble controlling operating costs and has delayed implementing system-wide accounting practices.

It has also angered faculty by introducing salary freezes at a time when its president, Richard Joel, earns well more than $1 million per year. Joel did, however, agree to a symbolic $100,000 pay cut.

Yeshiva's annual deficits totaled hundreds of millions of dollars from 2010 to 2012, according to Bloomberg News. In 2010, its deficit was $107.5 million, while in 2011 it stood at $46.7 million and in 2012 it was $105.9 million.

Madoff, 75, who stepped down from the Yeshiva University board, is currently serving a 150-year prison term for the $65 billion scheme that affected some 4,800 clients, including private clients, numerous Jewish educational institutions and non-profits.

Bernard Madoff is serving a 150-year prison term for defrauding investors of $65 billion.Credit: Bloomberg News
Yeshiva University's David H. Zysman Hall.Credit: Wikimedia Commons

Click the alert icon to follow topics:

Comments

SUBSCRIBERS JOIN THE CONVERSATION FASTER

Automatic approval of subscriber comments.

Subscribe today and save 40%

Already signed up? LOG IN

ICYMI

Election ad featuring Yair Lapid in Rahat, the largest Arab city in Israel's Negev region.

This Bedouin City Could Decide Who Is Israel's Next Prime Minister

Dr. Claris Harbon in the neighborhood where she grew up in Ashdod.

A Women's Rights Lawyer Felt She Didn't Belong in Israel. So She Moved to Morocco

Mohammed 'Moha' Alshawamreh.

'It Was Real Shock to Move From a Little Muslim Village, to a Big Open World'

From the cover of 'Shmutz.'

'There Are Similarities Between the Hasidic Community and Pornography’

A scene from Netflix's "RRR."

‘RRR’: If Cocaine Were a Movie, It Would Look Like This

Prime Minister Yair Lapid.

Yair Lapid's Journey: From Late-night Host to Israel's Prime Minister