SEC Failed to Get Madoff Records from Third Party ( Reported on CNBC this a.m. )

CNBC | 9/3/2009 | staff

[kellynla]

"In the examination of Madoff, the SEC did not seek records from the Depository Trust Company(DTC)(an independent third-party), but sought copies of such records from Madoff himself..."

"Had they sought records from the DTC, there is an excellent chance that they would have uncovered Madoff's Ponzi scheme in 1992."

Source: SEC Inspector General

[kellynla]

This was reported on CNBC this morning.

If this report from the SEC Inspector General doesn't make fire shoot out of your eyes, nothing will!!!

[Gay State Conservative]

Well,that settles that.The obscenely rich oh-so-compassionate RATS that lost $$$ can now blame Bush....and sue the government.

As Yakov Smirnoff used to say....."what a country!"

[edcoil]

The SEC was run by my ex-congressman Chris Cox of Newport Beach, CA.

Seems he ran the SEC like he represented our safe seat district.

Poorly

[kellynla]

The incompetence at the SEC is just mindboggling...1992?
Who the hell is working over there, “Larry, Moe & Curley!”

[Yo-Yo]

"Had they sought records from the DTC, there is an excellent chance that they would have uncovered Madoff's Ponzi scheme in 1992."

(H.W.) Bush's Fault!

</sarc>

[Carley]

Time to investigate the CIA but no time to investigate those who looked the other way while Madoff scammed billions of dollars.

[kellynla]

Actually Cox wasn't sworn in for the SEC job until August, 2005. And “if” the clowns at the SEC had been doing their job, according to the SEC IG, Madoff would probably been discovered as far back as 1992.
Madoff's Ponzi scheme had been going on for a long time before Cox ever went to the SEC.

[edcoil]

True, shows the power of political donations to “look the other way” however, Cox did say he understood the corruption and was going to clean it up. He didn’t.

I don’t hold him to the entire blame, he became as feckless and corrupt as the system.

[philetus]

The idea that Cox ran the SEC poorly almost sounds like damage control when you hear statements from other people like:
“I talked to Madoff for 5 minutes and knew he was a fraud”.
I think there was a lot of collusion in the SEC

[kellynla]

“Cox did say he understood the corruption and was going to clean it up. He didn’t.”

“He didn’t”

Again, I don’t know when the investigation into Madoff started but I would suspect it started before his arrest last year...

I’m no fan of Cox but lets keep the facts straight here...Madoff’s Ponzi scheme lasted TWENTY FRIGGIN’ YEARS!

And Cox was only in office 3 years when Madoff was arrested.

[dfwgator]

Even a blind man could see that Madoff bought off half the SEC.

[philetus]

There was more than incompetence.

NEW YORK (CNN) — A whistleblower who repeatedly warned the Securities and Exchange Commission that Bernard Madoff was perpetrating a massive investment fraud testified Wednesday that the regulatory agency that oversees financial markets is inept, “financially illiterate” and far too cozy with the financial titans it is supposed to be regulating.

“The SEC is also captive to the industry it regulates and it is afraid of bringing big cases against the largest most powerful firms,” said Harry Markopolos, an independent financial fraud investigator. “Cleary the SEC was afraid of Mr. Madoff.”

There was collusion,cowardice, and butt kissing.

[kellynla]

From what I understand the SEC is a revolving door...
Folks go to work there to get experience so they can apply for much higher paying jobs on Wall Street.

[dfwgator]

Someone should have been “watching the watchers.”

[kellynla]

Do you have a link for that CNN reference.

I’d like to read the entire article.

Thanks,

Kelly

[philetus]

http://money.cnn.com/2009/02/04/news/newsmakers/madoff_whistleblower/index.htm

[kellynla]

Thanks...again!

[rolling_stone]

"In the examination of Madoff, the SEC did not seek records from the Depository Trust Company(DTC)(an independent third-party), but sought copies of such records from Madoff himself..."

Sounds like the DNC and Congress accepting Obama's statement that he was qualified as an NBC to be President. Violates all rules of even a perfunctory examination of qualifications. FAIL.

[Clemenza]

Bernie ping!

[Liz]

Thanks for the heads-up.

Another red flag----order slips of Bernie’s trades (that were non-existent).

What about Bernie’s IRS returns? Those should have been a red flag.

CASE IN POINT: A college accountant checking up on a n/p his institution was invested in got the IRS returns and found an entry for interest-bearing accounts.

That single entry showed the n/p could not possibly have the assets it claimed to have earning interest.....and brought the n/p Ponzi scheme to a halt.