The arrest of the legendary funds manager Bernie Madoff on charges of securities fraud on December 11, 2008 left Wall Street reeling in disbelief. Madoff admitted that his investment advisory business, was all just one big lie. He had allegedly masterminded a massive and long-running Ponzi scheme. The biggest investment fraud of over $50 bn reveals the failure of the regulators and the inadequacy of the regulations.

The year 2008 started with the biggest ever banking fraud committed by rogue dealer Jerome Kerviel of France's second largest bank Société Générale. The $7.20 bn hit to the Société Générale was extraordinary and it was presumed that the bank would become the target of any hostile takeover by banks BNP Paribas. However, the sheer size of the balance sheet helped the bank to remain independent and survive the biggest ever-banking fraud in the banking industry.

The sale of Bear Sterns to JP Morgan in the month of March gave a further indication of the tough times in the coming days. As per the prediction, the year 2008 saw the biggest ever meltdown in financial industry and investor's wealth has been eroded to a record level in the stock indices worldwide. Commodity prices reached to new highs in the year. Also crude trading reached a all time high of $147 per barrel, nevertheless it was well below the $200 per barrel price as forecasted by the dealer, Goldman Sachs. Subsequently, the bankruptcy of Lehman Brothers opened the Pandora's Box and a financial Tsunami that surpassed the boundaries of economies and financial market.

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