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As If Any More Abuse Of The SEC's "Work Ethic" Was Possible...
The SEC Inspector General, David Kotz, must be on a different payroll/career track than most of his colleagues at the SEC, because the blasting report he just released should finally force legislators to reconsider their approach to regulation of a market that ever since the SEC-Wall Street complex merged, has generated exclusive synergies for the 10 or so investment banks that dominate regulation (sorry Mary, we call it like it is) at the expense of everyone else.
From the report:
As the foregoing demonstrates, despite numerous credible and detailed complaints, the SEC never properly examined or investigated Madofi's trading and never took the necessary, but basic, steps to determine if Madoff was operating a Ponzi scheme. Had these efforts been made with appropriate follow-up at any time beginning in June of 1992 until December 2008, the SEC could have uncovered the Ponzi scheme well before Madoff confessed.
And here is Mary's doing what she does best: provide more excuses for the inefficacy, cronysim and lack of results that apparently a $1 billion budget buys these days.
Statement on the Release of the Executive Summary of the Inspector General's Report Regarding the Bernard Madoff Fraud
by
Chairman Mary L. Schapiro
U.S. Securities and Exchange Commission
Washington, D.C.
September 2, 2009Since Bernard Madoff's fraud came to light last year, the Securities
and Exchange Commission's Inspector General has been investigating why
the agency failed to detect it. His report makes clear that the agency
missed numerous opportunities to discover the fraud. It is a failure
that we continue to regret, and one that has led us to reform in many
ways how we regulate markets and protect investors.
In an effort to provide a full accounting as quickly as possible, we
are releasing the Executive Summary of the Inspector General's report,
to be followed by the 450-page report in the coming days.
When I took office in January in the wake of the Madoff fraud, I
decided that we would not simply wait for the Inspector General's
report before taking action. Instead we have been reviewing our
practices and procedures, addressing shortcomings, and implementing the
lessons learned.
The findings contained in the report reinforce my view that the many
changes we have made since January will help the agency better detect
fraud.
We have streamlined our enforcement procedures and are putting more
experienced staff on the frontlines. We also have bolstered our
inspection program, started to revamp the way we handle hundreds of
thousands of tips received annually, begun to hire new skill sets,
increased internal training, and sought more resources to keep pace
with financial fraudsters.
Although numbers cannot tell the entire story, already we have filed
more than twice as many emergency temporary restraining orders this
year related to Ponzi schemes and other frauds, as compared to the same
period last year.
In addition, we have proposed new industry rules that will better
protect clients of investment advisers by mandating independent reviews
to assure that a client's account contains the funds that the
investment adviser says it contains. And, we have sought legislation to
enable us to compensate whistleblowers for providing substantial
evidence of wrongdoing. [A more complete list of the reforms undertaken
is available at http://www.sec.gov/spotlight/secpostmadoffreforms.htm.]
Since becoming Chairman, I have been impressed by the expertise and
dedication of the men and women at the SEC and their willingness to
embrace the changes that we have undertaken to better protect
investors. I am confident that together we will succeed in our efforts
to revitalize the agency and help bolster investor confidence.
If nothing else, this conclusively proves that at least one person is impressed by the "expertise and dedication" of the SEC men and women.
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Don't you know? Mike Bloomberg *is* Durden. ;)
As if you expected any worse, they all knew and were told to look the otherway. SOS, Where was Mary Shapiro? Finra got several complaints? Its all orchestrated BS!!!
When Division heads are held personally responsible for the losses, then maybe you will see an empty building...or due dilligence!
Can anyone tell me where I can find historical advance/decline data for Wilshire 5000?
Thanks in advance!
I think a lof of people don't understand the function of FINRA. They either put blame on FINRA that is unwarranted or they don't give them credit where its due (sometimes, not always). For instance, when SEC files lawsuits on insider trading, usually 99% of the case was conducted by FINRA, but SEC usually only adds an addendum thanking FINRA for 'assistance'. This would actually strengthen TD's case b/c a lot of the work SEC gets credit for, they don't do at all. Having said that, I Mary Shapiro did improve FINRA from where it was before her arrival, so I don't think all is lost for SEC... considering their past performance, I think she may improve SEC (even though it may not mean much in the grand scheme of things).
Also, to get a good idea of corporate culture, check out http://www.glassdoor.com and read comments of actual workers within the companies. (Last I checked, FINRA has substantially more entries than SEC).
Finra is the SIA's lil bitch..nuff said. Just look at the revolving door. Now that it is the Super Regulator taking over NYSE useless work, its just another SRO reporting the the industry!
Good Job TD
Since Madoff never bought a single security with the money, it was impossible for the SEC to secure a third party verification of any purchase or sale. It is apparent that, no SEC auditor attempted to obtain a single third party verification document.
The SEC can rewrite all they want about the wheel but, if the auditors do not know how to audit, it will happen again.
It will happen again. And again and again.
TD: The movie must accompany this news release!!!!! Harry Markopolous testimony!
http://www.youtube.com/watch?v=uw_Tgu0txS0
thank you, Sqworl
Talk about giving a beat down. Thanks for the link Sqworl, it sets the tone perfectly.
How can you have inappropriate connections when nobody was conjugal, I mean, connected? zip, zero, zilch productivity, i'm sure there's some unemployed eager to find fault investigators by now, since so many ppl are pissed off! I'd fire 'em all!
It's kinda sad that we're better at auditing failure within the SEC than the SEC is at auditing fraud in their domain.
yea seriously
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
Mary is a collaborator. She, along with the others, will be dealt with when the time comes.
From your post to God's ears!
These whitewashes should be put up on WIKIPEDIA, so that public can pick them off.
A ... A ... A ... Ashkenazi! (Gesundheit.)
"In October 1993, Schapiro gave a speech in Lugano, Switzerland, "The Derivatives Revolution and the World Financial System," concerning potential regulation of the unregulated derivatives market in which she cited "the benefits to financial innovation that may result from a more flexible regulatory paradigm," and stated that she was "not convinced that consolidated regulatory supervision of securities firms and their affiliates is necessary or appropriate at this time."
Wikipedia
Mary was groomed for this position and was hand picked by the SIA for SEC head.
Obama Geithner, Summers, Rahm were bad enough, but this appointment killed any and all possibility of "INVESTOR CONFIDENCE"
They need more money. We should give them more money.
Oh why should I care, I just want sixpack abs, a badass SUV and a model for wife.
You, too?
would you please pay your clue phone bill?
madoff was ignored because he was part of an intelligence operation -
incompetence does not happen by accident....
the only people who believe that gross incompetence was in play with madoff are the same people who believe that cockamamie magic bullet theory which murder accessory arlen specter made up in 1964....
Lots of SEC agents are accepting bribes. Do an audit on their banks accounts.
Ah, that's what, only 16-1/2 years they had to catch him? This is a government agency we're talking about, right? I'm not sure who said it first, but whoever did had it exactly right when saying that the nine scariest words in the english language are:
"we're from the government, and we're here to help."
it was only a 16.5 year lapse in processing, well within SD
Honestly, who cares about Madoff and his whole scam. In the end a bunch of stupid rich people got swindled. So what? Both the scam and the losses incurred are inconsequential in the big scheme of the financial fraud being perpetrated by the Fed and the Treasury. The estimates I've seen peg Madoff's losses at $65 Billion over the course almost 20 years. Hell, the Fed and Treasury are pumping and dumping this much almost every week now. On a relative scale, Madoff looks like a friggin' Saint.
*SIGH*
Breech of Contract... it will hold up in court...
MARY SHAPIRO needs to be FIRED.
She was part and parcel of the whole crony infested rats nest that is the SEC, and she needs to GO NOW!!
Wall Street simply OWNS our government at every level.
We hired Obama to prosecute the FRAUD, and to date, NOTHING HAS BEEN DONE.
It is truly sickening and disappointing beyond words.
Smart people voted for Ron Paul. If you want hopes and dreams, pretty halos around a good actor then bHo is your man.
All Roads lead to Mary Shapiro. This sorry excuse of a person needs to be shown the door of a prison cell.
We don't need no stinkin SEC..
I'm not sure if this is "for real" but the time is a coming.
Bikers vs Bankers
Charley Gasparino mentions his new book and suggests that
naked shorting --- was really happening all the time
"patrick byrne was right"
i bet it deals with naked shorting
The small fry will get fried
Re: at 1:40 EDT, Gasparino, on CNBC TV said....................
fast forward to 8:39 marker. Gasparino fought us tooth and nail. Said Aguire "had nothing".
http://www.cnbc.com/id/15840232?video=12...
Was it me or was Charlie having foreplay with Grano?? He touched him more than Pelosi blinked...lol
This is merely pacification for the public to make them "feel" the SEC is on the job. "Change" has come to the agency... Another distraction to keep them (the public) from focusing on the real issues. They are enablers pure 'n simple. Do your own DD when required. Whatever monies are given to them are completely wasted.
Memo to Mary:
Mary you are not there to "bolster investor confidence". That job is for the confidence men on Wall St. You are there to apprehend and convict criminals. You know, criminals like Mr. Ponzi and his disciple Mr. Madoff.
These whitewashes should be put up on WIKIPEDIA, so that public can pick them off.
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
The SEC has never once caught a criminal or crime. They should stick to making the rules and collecting the fines. Give the investigative stuff to someone that understands financial markets and greedy minds. Maybe the FBI?
When do the riots start?
It took 18 years to catch the Dugard kidnapper.She was living in plain sight.
There is a lot of incompetence going around
IMHO the SEC is a rouge agency. They don't feel the need to subject themselves to congressional oversight because 100% of their budget comes form fines and fees charged to the crooked bankers and hedge fund managers they are supposed to be policing. The SEC is totally corrupt, they make their own laws and report to no one.