Goodbye Mary Schapiro: Grassley Asks SEC To Account For Illegal Document Destruction

Tyler Durden's picture

Flashing headlines:


As a reminder, Grassley is after Stevie Cohen. If Mary Schapiro indeed willingly destroyed docs that exposed SAC as a criminal organization, she is going to prison. And if indeed this is true, in the aftermath of Madoff, that is where she belongs.

And for more from Grassley we go to Matt Taibbi who broke this story in the Rolling Stone by continuing to do the work of investigative journalists, who rather prefer to be fed teleprompted lines on comcast's fincomedy channel as quite unquote laughter inducing anchors, instead of actually performing, you know, investigative journalism.

The destruction of records by the SEC, as outlined by Flynn, is something far more than an administrative accident or bureaucratic fuck-up. It's a symptom of the agency's terminal brain damage. Somewhere along the line, those at the SEC responsible for policing America's banks fell and hit their head on a big pile of Wall Street's money – a blow from which the agency has never recovered. "From what I've seen, it looks as if the SEC might have sanctioned some level of case-related document destruction," says Sen. Chuck Grassley, the ranking Republican on the Senate Judiciary Committee, whose staff has interviewed Flynn. "It doesn't make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what time frame and to what extent its actions were consistent with the law."

Read the full thing at Rolling Stone

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Boilermaker's picture

She has a "matter of national security" letter like the one in Patriot Games.

-or- the AG will simply not prosecute the case.

Either way, it'll go away faster than the BP oil.

pesamystik's picture

Why is a Jew a head of every financial instution in this country?

Bernanke, the Fed

Gensler, CFTC

and our good friend Mary, of the SEC.

Jesus, it's like we're actually living a bad Nazi propaganda film where Jews really do control the money supply.

Fazzie's picture

Yeah, their actions today just like in Wiemar Republic days do little to dispel the supposed myth.

rocker's picture

Don't you mean their lack of actions.  The capital markets, the stock market and the bond market are casino ponzi scams.

If they want to do their job, they can start by throwing anybody out who has a software based system designed to manipulate stock prices.

All the excuses, we provide a different view, we provide liquidity and we provide price discovery are phony.

The only thing HFT's do is steal invested dollars from those who would like to invest. They buy and sell the same securities in seconds.

It is total Bullshit. It is worse than what Bernie Madoff did. They pump up prices and have taken over the market.

Now they have their computers plugged in front of wall street's computer. Call it a filter to steal your money.

They wonder why everybody is leaving and fund managers like Blackrock are now salesman for the market's thieves, including themselves.

Please let the market crash soon and blow up all the HFT groups in one crash.  Then we can once invest again after they are broke.

The fun of the markets is gone. Everything is sooooo leveraged up, even now.

tmosley's picture

It's easy to cite that every financial institution is a jew when you cherry pick the ones headed by jews.

Timothy Geithner is not a jew.

Martin Gruenberg (acting chairman of the FDIC) is not a jew.

John Stumpf (CEO and President of WFC) is not a jew.

Jamie Dimon (CEO of JPM) IS a jew.

Vikram Pandit (CEO of Citigroup) is not a jew.

And those were just the first 5 that came to mind.

Paul Bogdanich's picture

The point of the matter is and always has been when a country has a certain religous minority who only represent 2% of the total population how is it that they represent approximately 40% of the high rank financial types, approximately 55% of the high rank entertainment types and about 25% of high rank government types except in the security establishment (FBI, CIA, DOD & NSA)?  I should also say the same minority is also overrepresented in professorships, medicine and music but those activities are considered non-threatening so are less often mentioned.  The best answer I have ever hear is the religion in question is the only one of the "People's of the book" that does not have a strong anti-intellectual strain as a foundation of the religion.      

Joseph Jones's picture

Once Judaism becomes the complete law of the land (it pretty much is almost there now, Congress already passed a law in 91 IIRC instituting the "Seven Noahide Laws" which is just code for the Talmud), jewish medical doctors will STOP treating goyim on the Sabbath.

Such is against Judaic law right now.  But they are given permission to disobey the law only because to do so would cause harm to jews.  Once they have complete control, forget it stupid goyim, you'll just have to not have your heart attack or stroke or car accident on Saturday or you'll have to die.

So it's "dead" wrong (no pun intended) to say jewish md's won't cause harm to goyim.


Marge N. Callz's picture

But guess who is: Hall of Famer Rod Carew - he converted.

Fazzie's picture

Are you sure about Gruenberg? Lol. Im not suggesting all Jews are crooks, It just seems to me that the highly visible influintial ones that just happen to control vast sums of money should perhaps hold themselves to higher ethecal standards lest the historical stigma be perpetuated.


markar's picture

excuse me. Geithner is a Jew, Dimon is not.

Minimum Clearance's picture

Geithner was raised an Episcopalian and was married by a United Church of Christ Minister.  He is not Jewish.

Robsabi's picture

Nor is Dimon Jewish. He's the son of Greek immigrants, and is Greek Orthodox. But if it makes assholes feel better to just declare what they want to be the case to be true to support their preconceived idiocy, who are we to burst their bubble? Other than not being bigots on autopilot, that is.

pesamystik's picture

Well, Tmosely has admitted to being a Jew in many threads. He is basic our token Jewish crusader on ZeroHedge, constantly demanding any talks of Jewish people be banned from the conversation. I would take his opinion with a grain of salt.

Furthermore, the head of JPM is not nearly as important as the had of the Fed, CFTC, or the SEC. That being said, while there are some gentiles in positions of power, there are a vast disproportionate amount of Jews in finance, and at the very top of the pyramid.

The Fed, SEC, and CFTC are the three most important financial positions in the country, and the Fed is probably the most important in the entire world. With the exception of Volcker, every head of the Fed has been a Jew. Considering their extremely small percentage of the population, and how the Fed historically has transferred money from everyone else to the top 1%, many are starting to see the racket for what it is.

Also, from my understanding, Geithner is indeed not a Jew.


DeadFred's picture

Of course Volcker is an outlier based on behavior as well as religion.

Rick64's picture


This is from the Jewish Chronicle Online

All the main candidates for the crucial job of Treasury Secretary, the man who will have to deal with the global financial crisis, are Jewish. They include Robert Rubin and Larry Summers, who both held the job in the Clinton Administration, former president of the Federal Reserve Paul Volcker, president of the Federal Reserve Bank of New York Tim Geithner and even New York Mayor Michael Bloomberg, who is mentioned as an outside candidate.

Geithner worked for Kissinger Associates in Washington for three years

Robsabi's picture

Well, it just goes to show that Jews aren't perfect either, but rather are only exactly human, just like you sorry sons of bitches. His was married, for example, in a United Church of Christ ceremony.

Rick64's picture

Many don't practice Judiasm, but are still Zionists. I believe their statement to be true, his ancestors are Jewish.

Joseph Jones's picture

Cross a jew, profess the truth about the Talmud and the Rabbis, in most professional fields, your life is over. 

From Judaism Discovered, Michael Hoffman (a so-called "Judaic"), pg 438 top


Judaism’s Talmud, Soferim 15, Rule 10.  This is the saying of Rabbi Simon ben Yohai: Tob shebe goyyim harog (“Even the best of the gentiles should all be killed”).  From the original Hebrew of the Babylonian Talmud as quoted by the 1907 Jewish Encyclopedia, published by Funk and Wagnalls and compiled by Isidore Singer, under the entry, “Gentile” (p. 617).  Some translations conceal this Talmud passage.  The Jewish Encyclopedia states, “…in the various versions the reading has been altered, ‘The best among the Egyptians’ being generally substituted.”  In the Soncino version: “the best of the heathens” (minor Tractates, Soferim 41a-b)*


* Jewish Press, June 9, 1989, p. 56B       


Hoffman demonstrates throughout his book: The Talmud is Judaism’s holiest of all holy books, far above the O.T., which Judaism believes to be a poem only understood through the Talmud interpreted by a Rabbi.  In other words, Judaism is all-Talmud all the time.  The above passage is in full effect same as when authored.  The Talmud instructs the Rabbis to lie and obfuscate the truth of such passages to naïve goyim, only until Judaism rules supreme over the land, at which time all such passages are subject to immediate enforcement.


Something interesting I noticed within the past 6-8 weeks ago here at ZH.  A member proposed that a guest editor with MS or some other debilitating disease should "die".  He proclaimed it multiple times with great enthusiasm.


I remember not one other member (including myself, guilty) posted something like "shut up you evil bastard" or anything like that.


Then...couple weeks ago another member posted links and stuff about jews (I think his sources were good and sources I'm very familiar with).

Almost immediately the tired old "anti-semite" slur comes out to make the guy shut the heck up.

Interesting to compare the two reactions. 

IMA5U's picture

it's because they are smarter than us



Lowest Common Denominator's picture

It's because, back in the day, Xtians were forbidden by their religion from charging interest, so they set up the Jews to run the banks.  The rest, as they say, is history.

Joseph Jones's picture

Didn't you know that Hitler made it permanently safe for the Rabbis to do whatever they want?  The stupid goyim give the Rabbis a permanent teflon shield called the "anti-semite" slur.  

Thought I'd squeeze this in quick before the first anti-semite slur arrives for your bold post: Most goyim know little about the fact that the Rabbis themselves say Hitler did God's work against the jews who did not walk in step with the Rabbis.




max2205's picture

Good riddance you fucking CUNT

IQ 145's picture

It'll die faster than the "we got Osama Bin Laden, but we lost the body on the way home", story.

Boilermaker's picture

Well, I would be neglectful if I didn't mention the enormous flaming pelican off the coast of Los Angeles that looked a shitload like a submarine launched Chinese ICBM.

Just tossin' that out there.

Ancona's picture


Too bad about that million dollar a year job in "the industry" you won't get now, bitch.

I hope you enjoy non-consensual lesbian prison rape parties.

WonderDawg's picture

Taibbi is a great journalist but, unfortunately, nothing is likely to come of this. His previous articles stir up some shit for a short period of time, everyone is up in arms, and then it gets replaced in the collective public awareness by some other shitstorm. I appreciate his efforts, though, and hope that my cynicism is wrong this time.

He's got some stones for putting this out there and I admire his diligence. Hope he doesn't have a mysterious car accident.

FatFingered's picture

Or even faster than that Fucu...Fukushi...sushi...uh...What was the name of that Japanese Plant thingy story?

Dr. Richard Head's picture

In my 100 rounds of silver I purchased today I came across two 9/11 rounds.  One says "We will never forget" and the other says "Land of the Free."  Being the skeptic I am I read them as "I will never forget how 9/11 was used to subvert the 'Land of the Free'"

Bastiat's picture

Inaction Jackson will be ON the case!

Popo's picture

Exactly.  If you pull this thread, the entire ball of thread comes unraveled.   This is racketeering.  It is 100 organizations and tens of thousands of people that mutually profit, and protect one another.  


IQ 145's picture

Sounds like the Federal Government to me; oh wait.

Troll Magnet's picture

schapiro will be convicted, pardoned, then named to the board of directors at JP Morgan after turning down similar offers from Citi and Goldman.

Judge Holden's picture

If you drop the phrase "convicted, pardoned, then", you're sentence would be a lot more accurate.  What makes people here (including Tyler) think she will even be indicted?

Rodent Freikorps's picture

Mid level fall guy and she is golden.

Did ya hear the three supervisors of Fast and Furious got promoted?

This is your government saying, "Fuck you."

Boilermaker's picture

Well, you don't REALLY want to know what's in the you?

The Wolf's picture

Clear & Present Danger...

Moira... the machine is still on...

Robslob's picture




Dear Friend:      Thank you for contacting me regarding the Federal Reserve System.  I welcome your thoughts and comments.        On November 3, 2010, the Federal Reserve announced a new program to buy $600 billion of United States Treasury bonds over an eight-month period.  Through this program, known as quantitative easing, the Federal Reserve aims to lower interest rates as a means to encourage businesses to borrow money at low rates to use for growth and investment.        This is the second round of quantitative easing (QE2) used by the Federal Reserve in response to the economic recession that our nation continues to face.  From November 2008 to March 2010, the Federal Reserve purchased $1.7 trillion of Treasury securities and mortgage-backed securities, a purchase program that pushed the Federal Reserve’s balance sheet to nearly $2.4 trillion.  In March 2010, citing improved economic conditions, the Federal Reserve stopped buying additional securities, and began to shrink its balance sheet.        However, our nation’s economy has seen little improvement.  The national unemployment rate remains high, hovering at 9%, and the home foreclosure rate continues to be problematic.  Despite efforts to increase business lending and growth, many businesses, large and small, remain hesitant to pursue new projects due to lingering economic uncertainty.        I am pleased that Congress removed some of this uncertainty by extending important tax relief from 2001 and 2003.  This ensures that every American is spared from looming tax hikes, and I believe that this tax agreement will spur economic growth and job creation that our economy needs.  Unfortunately, great uncertainty remains with the implementation of President Barack Obama's health care law, onerous regulation from federal bureaucracy, and out-of-control spending.        Despite my opposition to increased spending, the federal government has posted deficits of $1.4 trillion and $1.3 trillion over the past two years.  Our nation’s debt is on an upward trajectory, recently surpassing an historical $14 trillion benchmark in December 2010.  The federal government is simply not demonstrating the federal responsibility our nation needs.        Through monetary policy, the Federal Reserve is only following suit.  Since its inception in 1913, the Federal Reserve System has served an important role in our financial system.  However, I am concerned with the extraordinary and unprecedented actions taken by the Federal Reserve to address our nation’s current economic downturn, particularly programs such as two rounds of quantitative easing that could ultimately swell the Federal Reserve’s balance sheet to nearly $3 trillion.        I voted against the nomination of Federal Reserve Board Chairman Ben Bernanke to serve a second term, and have expressed my concerns to him about the risks of the Federal Reserve's actions, especially with regard to potential future inflation.  I have also consistently supported efforts to bring greater transparency to the Federal Reserve and its newly created programs.        With my support, a measure to bring greater transparency to the Federal Reserve was included in the Wall Street Reform and Consumer Protection Act (P.L. 111-203).  This amendment requires two audits to be completed by the Government Accountability Office by July 21, 2011.  The first will be a one-time audit of all emergency lending and other financial assistance provided by the Federal Reserve from December 1, 2007.  The second is an audit of the governance of the Federal Reserve System, and is specifically an analysis of how bank directors are appointed.  Once completed, both of these audits will be posted at:        In addition, this measure required the Federal Reserve to disclose online all loans and financial assistance provided from December 1, 2007 through July 21, 2010.  To access this information, visit:        In reviewing this disclosure, I am particularly troubled by the amount of emergency assistance extended to foreign banks and non-financial institutions.  With more recent actions such as QE2, I believe there should be even greater transparency within the Federal Reserve.  During the 111th Congress, I supported additional measures to bring even greater transparency to the Federal Reserve.  I was a co-sponsor of S. 604, the Federal Reserve Sunshine Act, to require a full GAO audit of the Federal Reserve.  I will continue to support legislation to increase transparency at the Federal Reserve.        As Congress considers legislation to stabilize our financial system and improve the disclosure and accountability of financial regulatory authorities, you may be certain I will keep your views in mind.  I appreciate hearing from you, and I hope that you will not hesitate to contact me on any issue that is important to you.   Sincerely, Kay Bailey Hutchison United States Senator   284 Russell Senate Office Building Washington, DC  20510 202-224-5922 (tel) 202-224-0776 (fax)
Popo's picture

"Access Denied" on above link

jo6pac's picture

Yeh I got that on an earlier story

Sean7k's picture

Worked fine for me.

banksterhater's picture

works fine,  I stopped reading in disgust when Matt said (somewhere along the way the SEC fell and hit it's head on a pile of Wall St money...) that's destined to be a classic hahahaaaaa

HelluvaEngineer's picture

Oh sorry.  That was just the internet kill switch.

Sudden Debt's picture

maybe your porn filter kicked in?

SEC DOES WALLSTREET reminds me of another movie.... a classic...


JW n FL's picture

Is the SEC Covering Up Wall Street Crimes? A whistleblower claims that over the past two decades, the agency has destroyed records of thousands of investigations, whitewashing the files of some of the nation's worst financial criminals.
navy62802's picture

Ever since Taibbi's "vampire squid" piece about Goldman Sachs, I've been following his writing. This just adds to his list of hard-hitting articles. I am absolutely shocked he hasn't received any awards for his work. Personally, I think the man deserves a Pulitzer. Or at least a Presidential Medal of Freedom for risking his ball sack with the work he's done.