SEC In "Complete Panic" Over Madoff

[Joanne98]

A veteran staffer in the SEC's enforcement division tells TPMmuckraker's Zack Roth that the agency is in a "state of complete panic" over Bernie Madoff's $50 billion fraud.

At the same time that the agency is trying to unravel the unprecedented decades-long scheme, staff is being ordered not to destroy any records related to its earlier investigations of Madoff because of inside and outside probes into the SEC's own role in not catching Madoff sooner.

Meanwhile, paranoia has set in, we're told, and junior staff has been ordered to go back and review other cases the SEC has closed in recent years out of fear that violations may have been missed in those cases, too.

http://www.talkingpointsmemo.com/archives/249045.php

[rucky]

1. Time for a housecleaning.

[opihimoimoi]

2. Them shredders will soon be functioning over time....

[RUMMYisFROSTED]

3. Aw, for once some bigwigs got fleeced.

:nopity:

[formercia]

7. That's why the SEC is in a panic.

If it were you or I, they would shrug and say 'shit happens.'

[RUMMYisFROSTED]

9. I'm sure plenty of regular folks got fleeced, too.

But as you said, that's the "fleecing base" which arouses no concern.

[formercia]

11. All the benefits of owning slaves

without the overhead.

Poppy fondly refers to us as "fodder units."

[depakid]

4. There are people in that agency who need to be prosecuted

and not only for this case, but other regulatory "failures."

There's no doubt in my mind that personnel on many levels have violated federal laws....

[The Backlash Cometh]

12. Is Madoff's niece's husband still working for the SEC?

[Karenina]

5. Ya think?

:popcorn: Got any Dr. Pepper?

[bemildred]

6. Anybody that thinks this is "unprecedented" isn't paying attention.

This sort of thing happens all the time.

It does seem reasonable to ask why this was allowed to continue for so long? The SEC may well have good reason to be panicky.

[Kber]

8. I've not read everything on this, but didn't Maddoff turn himself in?

I think Frank Rich mentions this in his column today.

In other words, if he hadn't ratted on himself, he'd still be in business, operating with a clean SEC bill on health.

My own theory - he uncovered the fraud perpetrated by someone close to him (like is son or wife), and as an old man, decided to take the fall by turning himself in and swearing that it was all his idea.

Kber

[dansolo]

10. I thought I heard that his son turned him in

[The Backlash Cometh]

13. Here's a compilation of articles.

See post #9 to see where the investigation is going next.

[Wednesdays]

14. Oh

:nopity: