MADOFF SCANDAL: SEC Didn't Act On Madoff Tips

washingtonpost.com:

The Securities and Exchange Commission learned about what it describes as one of the largest securities frauds in history when Bernard L. Madoff volunteered his confession, raising questions about the agency's ability to police the financial marketplace.

The SEC had the authority to investigate Madoff's investment business, which managed billions of dollars for wealthy investors and philanthropies. Financial analysts raised concerns about Madoff's practices repeatedly over the past decade, including a 1999 letter to the SEC that accused Madoff of running a Ponzi scheme. But the agency did not conduct even a routine examination of the investment business until last wee

Read the whole story: washingtonpost.com

Comments

[ponzischeme]

The blog comment from the beginning of 2006 indicated that Spitzer's office looked into Madoff at the beginning of 2006. The question is why he didn't find anything untoward. He seems to have decided not to take down Madoff, so your comment doesn't make sense.

[themodernleader]

The principle of self regulation is an unsound principle. The principle of independent board of regulators is a more valid principle.

[The Hedonistic Pleasureseeker]

Some may see this as an argument for more regulation, and once upon a time I would have agreed with them. Today I think they are delusional. What's the point of having laws if they are only selectively enforced?

Get rid of the SEC. All this fuss making an example of Martha Stewart and they ignore Madoff? The same goes for the FDA, which wastes my tax money harassing vitamin companies and cherry farms for making health claims, while ignoring the obvious dangers of aspartame and GMOs.

It's politics. You're in or your out. It's akin to being in high school, but with higher stakes. I don't want my tax money paying for this. With "oversight" like this we might as well go seat-of-our-pants without the regs and pay fewer taxes. At least we'd know to do our due diligence before we make an important life choice. Let the court system eliminate the fraudsters: If we could just sue without getting the corporatist runaround we might put the fear of (whoever) in them.

[nikky]

I SAY LET THEM THEY ARE SOME OF THE SAME ONES WHO WHAT TO LET THE AMERICAN CAR MANUFACTURERS SWING IN THE WIND IN OTHER WORDS THEY WERE NOT WORRIED ABOUT THE COMMON PEOPLE SO I COULD CARE LESS

[Moshe]

SEC financial insiders not policing their own . . . I'm shocked!!! Shocked I tell you!

In other news, water reported to be wet, and the sun may be rising in the east . . .

[2008CaliforniaFan]

My "Christmas Wish" did not come true.

If only Bush or Cheney had invested with Madoff? (Karma-only fitting)
You think the Government would 'investigating' him then?

I'm guessing he would be 'resting' at the Republican's Caribbean Spa (Gitmo) clearing his Mind...
with a little 'waterboarding THERAPY'.

I'm Dick Cheney and I approve of this message/ 'treatment'.

[Oldbuck]

This goes right back to you can not let the Fox guard the hen house which has been the philosophy since the 1980s this is the basics of the Republican party. They started this during the Reagan Administration right on through the Bush Administration.

[Troubledwawa]

As easy as Madoff's scheme was to spot, there had to be a payoff somewhere...

[Candyx]

It wasn't that they failed to act. The SEC chose not to. Again, they chose not to.

[runforfun54]

Why.is this guy.even out on bail? If he were being prosecuted by the same office (US Attorney) for selling $100K worth of cocaine and happened to be Latino and/or African.American, you KNOW bail would have been denied. I also think it would be a good idea to have him on suicide watch - would hate for all that information to die with him, though, when his time is up. and he passes to his final resting place there will be---very.few tears shed.

[Freedomscap]

Madoff was given 24 hrs, by the judge to find 2 folks that will co-sign on his 10 million bond.

[Venom5809]

I suggest we get a grass roots campaign to get Spitzer back in office as the Attorney General of New York.

[BlueZoo]

CNBC aired tape of a Congressional hearing in the early '90s and Senator Phil Graham was testifying. He was asking for deregulation of the markets and, when asked why, he said the child of 1929 needs to be dressed as the adult of the 21st century! Apparently, they agreed and withdrew regulations from major parts of the financial sytem. There's a helluva lot of blame to go around in our Congress!

[Freedomscap]

Agreed.

[who38]

Hear, hear. We need to hold these people's feet to the fire until they understand the need for market regulation.

[powmari]

I'm as disgusted with Bush & Co as anyone here. But to be fair, the incestuous problem started with Arthur Levitt's SEC - Arthur Levitt, now a "consultant" for the Carlyle Group (a nest of rich & super rich + Saudis)

[who38]

Thanks for the info. Another shill for Carlyle.

[swp]

Sarcasm dummy........ub Bushie?