Lawmaker says SEC hindering House's Madoff probe

AP on Yahoo ^ | 2/4/09 | Marcy Gordon - ap

[NormsRevenge]

WASHINGTON – House lawmakers on Wednesday accused the Securities and Exchange Commission of impeding their probe into the agency's failure to uncover the alleged $50 billion Bernard Madoff fraud.

The clash between lawmakers and high-ranking SEC officials at a House Financial Services subcommittee hearing came after the man who waged a decade-long campaign to alert the regulators to problems in Madoff's operations denounced the agency for its inaction. ...

In loud, angry exchanges, lawmakers threatened to issue subpoenas to SEC officials to compel their testimony in the case.

[Badeye]

This is going to be interesting to see played out.

[NormsRevenge]

FR Keyword - Markopolos

http://www.freerepublic.com/tag/markopolos/index

[NormsRevenge]

.

Harry Markopolos, a former financial executive, testifies (L) and holds up a report (R) by the Association of Certified Fraud Examiners while testifying before a House Financial Services Subcommittee on "Assessing the Madoff Ponzi Scheme and Regulatory Failures" in Washington February 4, 2009. Markopolos, who tried to blow the whistle on Bernard Madoff, told Congress that securities regulators had ignored his repeated pleas for a thorough investigation of the accused swindler's alleged $50 billion fraud. REUTERS/Jason Reed (UNITED STATES)

[FreedomFerret]

I agree. Seems there was a unholy triade of incompetance, fear (of reprisals by the big fish), and lack of incentive to pursue difficult cases.

I’m going to love watching them kick this wasp nest wide open. Needs to be done.

[Badeye]

Needed to be done long ago.

[tcrlaf]

“This is going to be interesting to see played out.”

LOTS of Uber-Rich Democrat supporting trust-fund people involved.
You won’t see ANY of it.

[Badeye]

I suspect it was a wide range of investor’s that got scamed.

I’ve heard Kevin Bacon and his wife were pretty much wiped out, for just one example.

[dfwgator]

I bet at least half the SEC is in on the scam, the SEC needs an enema.

[milwguy]

While the SEC is incompetent, the securities industry’s self-policing organization, the Financial Industry Regulatory Authority, is “very corrupt,” Markopolos charged. That organization was headed until December by Mary Schapiro, President Barack Obama’s new SEC chief.

THat is most important takeaway from this article. Another one of Barry’s picks is dirty, and Schapiro is part of the problem, not the solution.

[Badeye]

Very good point.

[Badeye]

Same thought here.

[Lorianne]

"The SEC is ... captive to the industry it regulates ... "

So are many in Congress.

[UCFRoadWarrior]

Business Socialism running amok...again

[org.whodat]

In loud, angry exchanges, lawmakers threatened to issue subpoenas to SEC officials to compel their testimony in the case.

They will take the fifth!!! They are above the law, only common people follow the law, the SEC and illegals are exempt and Tom Dashell.

[wolfcreek]

Roosevelt formed the SEC to make sire only the *right* people were involved with Wall Street.(ones controlled be the International bankers like Tim Geithner)

Mary Schapiro is not *change*

http://www.bloggingstocks.com/2008/12/18/memo-to-obama-mary-schapiro-is-not-change-at-th/

[GovernmentShrinker]

To some extent, the excuse they’re giving (in a euphemistic way, but presumably comprehended by the congresscritters) is valid, namely that there is an ongoing investigation that could be harmed by public disclosure of what the SEC bigwigs now know about who knew what and when (hint: SEC staffers who are targets of criminal investigations may not be aware of that yet, or may not be aware whether or not anyone’s really got any evidence on them). No benefit to tipping off the targets in ways that could help them cover their tracks. Putting Markopolos’ testimony in open session made sense; putting the SEC big wigs’ testimony in open session did not — the latter was just done for the benefit of congresscritters who want voters to see/hear them yelling at the useless SEC bigwigs.

[penelopesire]

“the Financial Industry Regulatory Authority, is “very corrupt,” Markopolos charged. That organization was headed until December by Mary Schapiro, President Barack Obama’s new SEC chief.”

MAJOR OBSERVATION BUMP!

She is also on the board of Kraft Foods whose stocks took a huge plug today. Useless information, but interesting none the less.

[RatRipper]

Hard to pick a side in this fight. I hope they beat the he** our of each other.

[GovernmentShrinker]

There’s an upfront lack of incentive for anyone competent and diligent to take a job with the SEC or Fed. The gap in compensation is so absurdly huge that it’s simply a given that the dumb and/or lazy are charged with policing the smart and/or hardworking. You’ll never see a guy like Markopolos applying for a job at the SEC or Fed. The results are foreordained.