Matt Taibbi: The SEC's 'Orwellian' Wall Street Cover Ups

Rolling Stone:

For the past two decades, according to a whistle-blower at the SEC who recently came forward to Congress, the agency has been systematically destroying records of its preliminary investigations once they are closed. By whitewashing the files of some of the nation's worst financial criminals, the SEC has kept an entire generation of federal investigators in the dark about past inquiries into insider trading, fraud and market manipulation against companies like Goldman Sachs, Deutsche Bank and AIG. With a few strokes of the keyboard, the evidence gathered during thousands of investigations – $8,000 ... including Madoff," as one high-ranking SEC official put it during a panicked meeting about the destruction – have apparently disappeared forever into the wormhole of history.

Read the whole story: Rolling Stone

Comments

[JustaSlob]

11:42 AM on 08/24/2011

And here we are 8-24-11....Why is this story not on the front page for a MONTH !!!!!!! ??????

[mellojack2]

05:17 PM on 08/24/2011

BECAUSE THE BANKS ARE IN CHARGE OF EVERYTHING AND THEY DON'T WANT IT IN THE HEADLINES!!! CAN YOU SAY CONTINUED COVER-UP!?!?!

[Jenna Stevenson]

12:03 PM on 08/23/2011

Now it makes sense how someone like Bernie Madoff could have stolen so many people's money in his ponzi scheme for so long without getting caught. It could be bad management or it could be corruption at the SEC. Matt Tabbei was actually on Democracy Now today talking about the expose. His interview is here: http://bit.ly/nqmOTj

[Anym]

08:55 PM on 08/20/2011

So President Barack Obama completely supports this kind of criminal behavior.

[GrouchoAmigo]

02:22 PM on 08/20/2011

Why isn't this a bigger headline??

[JustaSlob]

11:42 AM on 08/24/2011

uN BEEE _FUGGIN LEAVABLE......

[Aries Warrior]

10:20 AM on 08/20/2011

When is Christopher Cox going to be investigated by the DOJ ?

[Bernique]

08:33 PM on 08/19/2011

THIS IS SO MUCH MORE IMPORTANT THAN ALL THE VAPID STORIES THIS SITE DISTRACTS US WITH!!! Matt Taibbi right now on Keith Olbermann (ch 196 on Dish Network). explaining it all. Where are the headlines on the respected news outlets??? where is the outrage in Congress? where are the culprits being hauled into hearings on the Hill? where are the resignations?? WHERE IS THE OUTRAGE?

Well, it is on Dylan Ratigan, 4 p.m. ET, MSNBC. But if Dylan is outraged, who cares? I is also on Keith Olbermann who is outraged. Who cares? I DO.

[Anym]

08:57 PM on 08/20/2011

Because it is being done by Obama had this been exposed while W was in office every channel would be covering this.

[Mikeeee]

03:33 PM on 08/19/2011

Good article Matt. Thank you.

[quietfortoolong2]

01:36 PM on 08/19/2011

Why is this no longer on the front page, HP? Is HP helping the SEC cover up their crimes, too?

[jnja]

01:41 PM on 08/19/2011

I wondered the same thing--not the first time I've had to use my history tab to re-find Matt's articles. For some reason I didn't expect to find it in " business"!!!! Lol

[katylied]

12:49 PM on 08/19/2011

Orwell's that ends well, I guess.

[SitandStay]

12:48 PM on 08/19/2011

Bush 41 vetoed the bill calling for a Blue Ribbon commission investigation of SEC violations in the transfer of assets of Eastern Air Lines with his fellow Texan, Frank Lorenzo, at the helm. The bill had passed with both the House and Senate voting for the investigation.
"In February 1987, Texas Air moved six airplanes from Eastern to Continental, a move that was seen as an anti-union move because Continental no longer had union workers. In March, Texas Air purchased Eastern's reservation system in a new subsidiary, SystemOne, for $100 million, substantially below its estimated value of $200 million to $400 million. Eastern then paid fees to lease back the system. The system was combined with other computer system assets and had 5,100 travel agent customers. Texas Air later sold half of its interest in the system to Electronic Data Systems for $250 million.
In October 1988, Donald Trump bought Eastern's shuttle service for $365 million, rebranding it as Trump Shuttle. In December 1989, American Airlines agreed to purchase routes to Latin America for $471 million.

[SitandStay]

12:43 PM on 08/19/2011

"Michael Milken - indicted on 98 counts of racketeering and securities fraud in 1989 as the result of an insider trading investigation. After a plea bargain, he pled guilty to six securities and reporting violations but was never convicted of racketeering or insider trading. Milken was sentenced to ten years in prison and permanently barred from the securities industry by the Securities and Exchange Commission. After the presiding judge reduced his sentence for cooperating with testimony against his former colleagues and good behavior, he was released after less than two years."

[SitandStay]

12:34 PM on 08/19/2011

I got more punishment for having pot growing in the backyard.

[SitandStay]

12:32 PM on 08/19/2011

Just tell the perps they will get tons of money to talk. Then take the money back.
Cuff 'em, Dan'O.

[wayne the pain]

11:18 AM on 08/19/2011

Matt os the best! His article shows us how much trouble we are in as a nation! The crooks have taken over and are looting the nation and people in the highest positions are protecting them! This protection includes the President and the Justice Department! Until we elect someone who will go after these thieves our democracy is in danger. It will be hard to elect an honest president because these thieves buy the elections with the billions they steal. Politicians know, play ball while you are in office and cash in when you leave. We have become a Banana Republic!

[No1 ILoveLucyFan]

11:12 AM on 08/19/2011

Why is there a question mark where there should be an exclamation point? Can anyone really doubt this as being truth? They all cover up for one another -that's what they do. In the past, now, and as long as they can get away with it. The way the MSM has ignored this for other nonsensical BS like who's on Dancing with the Stars, which American Idol will be booted off or which Real Housewive will spend too much flippin money on useless baubles is just mind boggling. I really REALLY wish journalistic integrity hadn't died with Walter Cronkite...but if Matt Taibbi can bring this story into the light and get this disgraceful situation changed for the better, I'm all for it.