We're not going to waste pixels on an elongated introduction for this one. If you want to find out just how dysfunctional our regulatory structure was before the crisis (and still is), here's a Prime Example.
Jump headfirst in at 1:02 for our conversation with SEC Whistleblower, Gary Aguirre:
We begin with the deferential/preferential treatment for the elite (one John Mack)
3:37: Why insider trading prosecution is B[L?]S
4:42 "The crackdown has gone beyond the needs of law enforcement."
5:05: Why no Corzine or Dimon? Seriously.
7:50 Khuzami! Stay tuned, because we spend a lot of time on this guy.
9:15 Revolving door is systemic (not cyclical) at the SEC. Yes, this includes the general counsel's office (whoops). It's all about the Rolodex (and Rolex?).
9:48 How Khuzami went from 200k to 5MM. Nice work, if you can find it.
"At some point you start thinking about that five million dollar a year job and how cushy it's going to be...I think it happens while people are at the SEC. They start planning where they're going to land when they get on the outside. They take all they're connections with them. They go into private practice, and they're set up to call back to the SEC to their former subordinates to get favors."
10:41 Esquire Aguirre's representation of the latest SEC whistlebloer, Darcy Flynn. And yes, we're still talking about Khuzami.
11:43: Dick Walker (seriously), and why the case sat on his desk.
13:10 How Khuzami supervised the creation of a John Paulson's "designed to fail" credit default swap.
14:05 "You would think that Mr. Khuzami would be disqualified from serving as the enforcement director at the SEC. But that was not the case..."
14:45: "You'd have to be investigating your former bosses. Maybe even yourself. That's not going to happen"
We couldn't agree more.
Hats off to you, Mr. Aguirre.
Best,
Bob (Twitter: EnglishPI [9])