Lawmakers to question SEC watchdog about Madoff

[DogPoundPup]

Source: Reuters

WASHINGTON (Reuters) - The internal watchdog at the U.S. Securities and Exchange Commission will testify Monday at a hearing by U.S. lawmakers who want to know how the investor protection agency failed to detect the alleged $50 billion fraud committed by Wall Street financier Bernard Madoff.

Members of the U.S. House Financial Services subcommittee on capital markets will take their first close look at the alleged Ponzi scheme that has touched everyone from bearish "Dr. Doom" economist Henry Kaufman to actor Kevin Bacon, both of whom invested with Madoff.

Madoff, a former Wall Street fund manager, is accused by federal prosecutors of running a $50 billion scam that ensnared wealthy investors, banks and charities around the world.

Critics say the SEC missed warning signs and failed to uncover the scandal until Madoff's sons went to authorities and told them he confessed to the fraud. SEC Chairman Christopher Cox recently asked inspector general David Kotz to probe the agency's conduct in the case.

Read more: http://www.reuters.com/article/politicsNews/idUSN3137650720081231?rpc=401&

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Also read: In Ironic Twist, Taxpayers May Be On The Hook For Some Madoff Losses, Via AIG

Looks like another victim of the Bernard Madoff mess -- albeit a very minor one -- is the US taxpayer.

In September, as part of its bailout effort, the Treasury Department made an $85 billion loan to insurance giant AIG, and got a 79.9 percent stake in the company.

And AIG appears to be exposed to Madoff's alleged fraud. As part of its homeowners coverage, the company offers a "fraud safeguard" policy, which would seem to cover some Madoff investors.


http://tpmmuckraker.talkingpointsmemo.com/2008/12/in_ironic_twist_taxpayers_may_be_on_the_hook.php

[sam sarrha]

1. madoff apparently only had one nearly 80 yr old accountant doing the books, on $50 Billion.? !! but

the SEC inspector was married to Madoff's family... like the SEC inspector that investigated W's 4 insider illegal dealings, 15 years fed prison each. sold off oll his stock from harken just before they went bust, to a family friend and didnt report it for 11 months. the investigator was his fathers legal councel when Poppy was Vice President, the SEC Director who appointed him was appointed by Poppy when he was president.. didnt find a thing.. dont look cant tell.

http://www.bushwatch.com/bushwater.htm
Who Bought Bush's Risky Harken Stock?

"...Was Bush's sale of Harken stock another instance of a helping hand from family friends? Or was it a simple case of a buyer trying to make a killing in a high-risk investment?...By the time of the sale, Harken's finances also were in the red. Daily trading activity in the stock was as little as 1,300 shares on the New York Stock Exchange. If Bush had tried to sell such a large amount of Harken stock on the open market, it would undoubtedly have driven the price far below the $4 a share he was paid....Uncovering little evidence to support an insider trading case, the SEC didn't interview Bush. SEC investigators interviewed Smith, but, according to Smith, they never asked the broker who bought Bush's stock. Over the past two years, news organizations have tried to persuade Smith to ask the buyer to waive the confidentiality that surrounds the transaction, but the retired broker has declined. Smith's difficult-to-read handwritten notes turned over to the SEC in the insider trading probe of Bush supply a clue. The notes for June 9 appear to state that "Geo Bush will sell 212,010 shares in about 2 weeks." The June 22 entry on the day of the sale appears to state, "s/212,140 at 4 to Lee for Bush." Smith declines to say whether the apparent word "Lee" refers to a person or an entity." --AP, July 14, 2002

"Bush "privatized"...$9 billion in university assets, transferring them to a nonprofit corporation known as Utimco that could make investment decisions behind closed doors.In effect, the money was put under the control of Utimco's chairman: Tom Hicks . Under direction, at least $450 million was invested in private funds managed by Mr. Hicks's business associates and major Republican Party donors. The managers of such funds earn big fees. Due to Mr. Bush's change in the rules, these investments were hidden from public view; an employee of Utimco who alerted university auditors was summarily fired. Even now, it's hard to find out how these investments turned out, though they seem to have done quite badly ." --Paul Krugman, July 16, ...snip"

the $12 million dollar gift was probably an illegal campaign contribution for governor

[proud progressive]

2. pardon my new england accent but, no fucking way 50b gets ripped-off w/o the sec knowing it

[Mongooseflies]

3. i believe that's

no fah-kin way!
These assclowns totally made off with some $ just like the dirtbags involved in the S&L scandal....

:grr: