SEC "In A State Of Complete Panic" Over Madoff Revelations

Talking Points Memo:

The revelation that Bernard Madoff -- who himself had in the past served as an adviser to the SEC on electronic trading -- was running an alleged "$50 billion ponzi scheme" has rocked the SEC to its core, according to a current long-serving member of the commission's enforcement division.

Read the whole story: Talking Points Memo

Comments

[Badgirl]

Bernie was able to lie about investment returns, pay out greater than average dividends and inflate the market value of people's investment accounts. And, only the one guy who wanted to replicate Bernie's strategy ever suspected anything! HAT'S OFF TO ILLIAD 'cause that TROJON HORSE TRICK STILL WORKS !!

[MacRiner]

Madoff's Painful Suppository
As painful as this economic meltdown will be, it had to happen. We were living a false sense of wealth for years. The lack of regulations coupled with greed, corporate arrogance and pyramid investments lead us into a casino mentality addicted with self-indulgence. The Madoff 50 billion dollar rip-off is an unfortunate illustration of how foolish we had become. As a society we were addicted to money and lost focus on family, environment; and the all important “checks and balances”. We let the corporate moguls play with us like lab rats on an enormous consumption wheel. Hopefully this is a time for a major paradigm shift in values. This melt-down of wealth is only as painful as our inability to let go of greed. Rob MacRiner Toronto

[johaster]

Maybe Americans should start aiming for humility and decency rather than image and success.

[mjtaylor22]

The next time this nation is dumb enough and asleep at the wheel enough to elect Republicans to the White house and Senate and Congress in unprecedented numbers, I will be sure to take advantage of their governing style, of don't ask don't tell, only the crooks it seems made any progress during these times, crooks liars, thieves cronies, yes they enforce no law when it comes to business, ethics, or consumer protections, cannot

even sue someone under a RNC administration, dam why did I not follow the Bush ways and get rich, lie cheat steal and deny everything. seems like every honest hard working American is paying dearly for the mis deeds of the dis honest, powerful and wealthy few.

dang....I missed the boat.

[Name Not In Use]

Let the Mormons run the SEC.

[beanandkitty]

Looks like the same people that interviewed Brownie for a job at FEMA interviewed this SEC screw-up.

[sloreader]

The children were nestled all snug in their beds, while visions of sugar plums danced in their heads;

[nrborod]

The SEC is in a state of complete panic as well it should be, especially given the fact that the entire finance world is a Ponzi scheme. Problem is, they're not the only ones in a panic.

[leftLibertarian]

They should either be fired for incompetence or face a jury on corruption charges.

[satsumajin]

How lucky these clowns are to be in the good ole U$ of A, rather than in some other jurisdiction where, like the late Admiral Byng, they would shot 'pour encourager les autres'.

[taricaziz]

401's and the like just ripe for the pickins. Pension act of 2006 amended to allow for downturn in economy, therefore less money put in to shore up pension plans, must be a coincidence, PBGC will go bust.

[Shammie2000]

Wonder if (W) and dickie channie had any of the billions made off the war invested with this guy, NAH

[goodkahuna]

In NYC anything like this can happen all the time. When they really examine where Madoff power for cover up was it was with NYC. NYC had a hands off policy to what they call white collar crime and have let investers of all kind get killed or destroyed.

This is ONLY the beginning if the NYC FBI would tell the truth you would be shocked at ALL the COVER UPS of billion dollar crimes here

[billyfitz]

What are you talking about? New York is just as diligent as the restr of the country in pursuing white collar crime - which isn't saying much i agree.

The problem is that there is "white collar" crime at all. Why make a distinction? Crime is crime. If you commit a crime - whether it's holding up a liquor store or defrauding wealthy investors - you should go to jail. A real jail, not some country club prison.

We are the only country that has two official penal systems - one for the wealthy and one for everyone else.

[ReasonIsMyReligion]

Re NYC (or NYS) and Wall Street greed... good thing that sexaholic former AG and former governor is out of the picture, eh?

(kidding)

[AlieNation]

The people of San Diego are very familiar with Mr. Cox for his recent finding that present and former City Council members and officials did not commit fraud a few years back when they approved a bond offering for a new Major League ballpark while failing to disclose a huge deficit in the City Employee Pension Fund. That deficit is now projected to balloon into BILLIONS of dollars in the coming years.

http://www.blogofsandiego.com/

Meanwhile the citizens of San Diego are contemplating a future of higher fees and taxes coupled with draconian reductions in city services, none of which will likely resolve the city's long term debts.

Mr. Cox has been a faithful servant to his party and its Republican masters in the Bush administration, where no matter how bad things get no one takes responsibility, no one gets fired, and law breakers go unpunished.

[castlerider]

That's how Bush made his first millions, convincing the City of Irving Tx to vote for and commit on a baseball Stadium for the Texans. Then he sold the team that he acquired with 160K Borrowed money for Millions....
Do you think he even thought to pay the voters back with ANYTHING, at least one ticket, or better yet, season tickets for one year? No way. He's entitled, remember?

[TrooAmerican]

SEC in a "state of complete 'holy crud we got caught looking the other way for a buddy.' "

[popizzy]

I guess McCain was right for suggesting Cox should be fired!

[DocWylie]

yup, a broken watch IS correct exactly two times every 24 hours.

[ReasonIsMyReligion]

Question:

Granted that fraud is fraud, criminally, but should "private" funds and fund managers be subject to the same regulation and civil oversight as "public" funds and fund managers?

Cheers to all.

[2garen]

Yes, especially when we the taxpayers are going to bail them out without our permission. I was reading that hedge funds now will be able to be bailed out at our expense.Welfare for the crooks and you and I will get the bill. What is wrong with that picture?

[ReasonIsMyReligion]

Re hedge funds and bailouts:

You have to go back ten whole years to 1998, when Greenspan and the Federal Reserve orchestrated a bailout of a huge hedge fund that was attempting to rewrite the rules of risk-and-return.

High risk should NOT "guarantee" a high return -- it should only guarantee high VOLATILITY.

But the signal was sent: the Fed and the banks would collude to guarantee positive returns REGARDLESS of risk. And off to the races we ran...

Read the last few paras, and note the money quote: "At the same time [Greenspan] ruled out direct regulation of hedge funds, saying it was possible to monitor the fund's activity and act when necessary. " Riiiight.

http://www.geocities.com/Eureka/Concourse/8751/jurus/hf100203.htm