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Madoff Hearing: SEC's Top Enforcer To Testify
Reuters via CNBC ^ | January 26, 2009 | Reuters

Posted on 01/27/2009 12:52:21 AM PST by CutePuppy

Several top U.S. securities enforcement officials will testify at a Congressional hearing into Bernard Madoff's alleged $50 billion fraud, the Senate Banking Committee said Monday.

The committee has called for testimony by the Securities and Exchange Commission's director of enforcement, Linda Thomsen, and the SEC's director of compliance, inspections and examinations, Lori Richards.

It has also asked Stephen Luparello, the interim CEO of broker-dealer watchdog the Financial Industry Regulatory Authority, to testify. Both regulators have been criticized for missing one of the largest investment frauds in history.

Incoming SEC chairman, Mary Schapiro, who was previously FINRA's chief executive, has said FINRA did not have the authority to inspect Madoff's investment advisory services, where the fraud allegedly took place.

Tuesday's hearing will be first time Congress will have a chance to directly question key regulators.

The Senate Banking Committee has asked the SEC to hand over streams of documents, including agency e-mails, complaint letters and other reports related to Madoff.

The House Financial Services Committee already held a hearing to explore why the SEC missed red flags and why it did not follow up on tips from one of Madoff's competitors.

FINRA is asking broker-dealers whether it referred any of its customers to Madoff's brokerage or any investment or service offered by the firm he managed, according to a document obtained by Reuters.

In a five-page letter, FINRA asked broker-dealers to provide all correspondence with Madoff employees. It also requested proof that the firms conducted due diligence on Madoff's business.

The SEC's internal watchdog is investigating whether that agency acted appropriately in the matter.

Stephen Harbeck, president of Securities Investor Protection Corp, has been invited to testify at Tuesday's hearing. SIPC is a nonprofit agency set up by Congress to help clients of failed brokerages.

Madoff's "Ponzi" scheme may be one of the largest in history, harming thousands of investors, including high-profile victims such as Steven Spielberg, Jeffrey Katzenberg, Fred Wilpon, and Kevin Bacon.


TOPICS: Business/Economy; Crime/Corruption; Extended News; Government; US: New York
KEYWORDS: bernardmadoff; finra; fraud; madoff; maryschapiro; ponzi; sec
The FINRA page about Mary Schapiro is now redirected to error / unavailable. However, here is the cached page FINRA - Biography - Mary L. Schapiro


1 posted on 01/27/2009 12:52:22 AM PST by CutePuppy
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To: Liz

PING


2 posted on 01/27/2009 1:02:16 AM PST by DieHard the Hunter (Is mise an ceann-cinnidh. Cha ghéill mi do dhuine. Fàg am bealach.)
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To: CutePuppy
Mistakes were made.

It's W's fault.

We did everything we could.

Madoff is a 'rat and thus not guilty.

We'll just increase out budget and that will fix it.

I need a promotino so I can apply the knowledge I've learned through this experience.

More 0be mumbo jumbo here.

3 posted on 01/27/2009 1:11:01 AM PST by Paladin2 (No, pundits strongly believe that the proper solution is more dilution.)
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To: Paladin2

MAdof’s only sin is to have acted as a Maverick. Had he used the funds for ACORN, he’d be a hero. Blago’s a bit in the same situation.

China’s reinvesting in the US for revolution via Acorn subprime loans. Rinos are in the tank in this scheme for China trade treason, so they won’t talk about this communist Ponzi scheme.


4 posted on 01/27/2009 1:19:48 AM PST by JudgemAll (control freaks, their world & their problem with my gun and my protecting my private party)
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To: JudgemAll
Had he used the funds for ACORN, he’d be a hero.

He is a "hero"... He was one of the bigger donors to Democrats that we know of (legally), and possibly even bigger one outside of legal channels. Money laundering and "offshoring" of funds for his clients is strongly suspected. How else could he get away with running a massive pyramid / Ponzi scheme for several decades, even when "investigated" and "audited" several times by SEC bureaucrats, with barely a slap on the wrist for "technical violations"?

5 posted on 01/27/2009 1:36:50 AM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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To: CutePuppy

AMEN!!!! His INVESTORS have been paid along the way.....ALL RATS.


6 posted on 01/27/2009 1:55:20 AM PST by Ann Archy (Abortion.....The Human Sacrifice to the god of Convenience)
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To: CutePuppy

I guess he were a buddying socialist, now it is more Marxist and “community organization” oriented... for what it is worth.

It’s a nice PC cover up of the ACORN thing anyways.


7 posted on 01/27/2009 2:12:39 AM PST by JudgemAll (control freaks, their world & their problem with my gun and my protecting my private party)
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To: Paladin2

We need more money.
I need a larger staff.
And a promotion.
Besides, I retire at 54 in a year.

Thank you Congressmen. I’ll write a report, that will go in a folder, that will be placed on a shelf, in a room, on a floor in a building.


8 posted on 01/27/2009 2:14:49 AM PST by Leisler
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To: CutePuppy

Niiiice. Well, she’ll have multiple opportunities to perjure herself today.


9 posted on 01/27/2009 2:55:06 AM PST by StAnDeliver (We Are Your Overlords.)
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To: CutePuppy
Madoff is the planned scapegoat for media focus to 'evil rich GOP' from the Left. The Dems & RINSO's know they have to advert attention away from the incestuous corruption that exists in DC.

Blago is another scapegoat too.

Both are doing the dance as they already know the lives of their families are at stake.....that's how it works.

It's The Dog and P0ny show take 28,651. Both will get relatively a slap on the wrists, about 3 years actually served in a luxury fed pen after off shore money is paid in bribes

10 posted on 01/27/2009 3:45:14 AM PST by RSmithOpt (Liberalism: Highway to Hell)
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To: Paladin2
Mistakes were made.

It's W's fault.

We did everything we could.

Madoff is a 'rat and thus not guilty.

We'll just increase out budget and that will fix it.

I need a promotinon so I can apply the knowledge I've learned through this experience.

More 0be mumbo jumbo here.

You forgot "Turbo tax" software.

11 posted on 01/27/2009 6:15:17 AM PST by dearolddad
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