Madoff verdict: The SEC is plain incompetent

September 2, 2009

A lengthy report examining the many ways the Securities and Exchange Commission botched its investigations of Bernie Madoff tells us something we already knew: the SEC can be awfully incompetent.

The report by the SEC Inspector General quickly dispenses with the notion that regulators either protected Madoff or covered-up their investigatory failures. But that’s the best that can be said for the SEC in this massive undertaking.

For now, the IG has released a 22-page summary of his findings. But a full 450-page book, outlining all the gory details of regulatory bungling, will hit the shelves in the coming days.

SEC Chair Mary Schapiro commenting on the IG’s findings says Madoff is a “failure we continue to regret.” She says the agency is already reforming its ways and promises not to miss the next $65 billion Ponzi scheme.


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Please pardon the OT (I’m at a loss for words on the SEC report)

Over at the WSJ they’re quoting Goldman economist Jan Hatzius as suggesting that the Fed can control inflation by dumping a bunch of their Agency Debt holdings.

“… Selling its billions worth of MBS, notes Mr. Hatzius, would drive up mortgage rates and cool the housing market, which in turn should slow the economy.”

“MBS — Fed’s Inflation-Fighting Weapon” 9297181241.html

Right. And emptying a couple of dozen rounds from a Thompson submachine gun into the patient might reduce his elevated heart rate.

1) that’s, that’s, … totally insane

2) why would GS even suggest such a thing?

3) don’t you reporters, like, ever question what these experts come up with?

“SEC Chair Mary Schapiro commenting on the IG’s findings says Madoff is a “failure we continue to regret.””

as opposed to being a failure we can walk away from like FINRA?

Posted by ARJTurgot | Report as abusive

I am a Petters victim who has had $50 million embezzled by Petters while judges and lawyers he paid to “look the other way” looked the other way. The Minnesota US Attorney’s Office reported that Petters swindled $3.65 billion but in reality swindled in excess of $50 billion- the difference will go to the judges and politicians he paid off over a 20 year period- more on this massive swindle is available from

Posted by mspexec | Report as abusive