[R W Reactionairy]

So you believe that willful negligence in signing a certification is acceptable under SOX? Or that robust internal controls can be defeated on a scale sufficient to grab headlines by a single actor? You appear to know a fair bit about the matter and the law but in no way does not smell right.

[proxy_user]

It doesn’t really matter if his SOX certification was correct or not, because that it is not the subject of the suit. The subject is ‘failure to supervise’.

Now if you look at all the other ‘failure to supervise’ cases, they are brokerage houses that let their stockbrokers engage in a pattern of abuses. The customers complained, they should have known, but they looked the other way.

Now take the Corzine case. Up until that fatal Friday, Edith O’Brien had obeyed all the CFTC regulations. Corzine had no reasonable expectation that she would suddenly start transferring customer funds. When she did so, the accounting system immediately flagged it and everyone started investigating.

That is why I believe Corzine has a pretty strong defense against these particular accusatinos.