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26 Comments
- treehugger87, on 07/02/2009, -0/+16Actually, there were credible warnings as far back as May, 2000.
http://www.democracynow.org/2009/6/30/judge_senten ...
From the Democracy Now! interview: Harry Markopolos, independent financial fraud investigator testifying before Congress in February of this year.
"In October 2001, when Madoff was still in a $12 billion to $20 billion range, again we felt confident that we had provided even more evidence to the SEC, such that he should have been stopped at well under $20 billion. And again, in November 2005, when Mr. Madoff was at $30 billion, twenty-nine red flags were handed to the SEC, and yet again they failed to properly investigate and shut down Mr. Madoff’s operation. Unfortunately, as they didn’t respond to my written submissions in 2000, 2001, 2005, 2007 and 2008, here we are today. A fraud that should have been stopped at under $7 billion in 2000 has now grown to $50 billion." - omgTHEPATRIOTS, on 07/03/2009, -0/+9The SEC was obviously bought off. Follow the money and arrest those ***** too!!
- colonelcupcake, on 07/03/2009, -3/+11To be fair asking a government employee to do their job is a little ridiculous
- vulcanius, on 07/03/2009, -0/+8Yeah, check the SEC officials' bank accounts.
- seltaeb4, on 07/03/2009, -2/+7As if Bush's SEC would have given a damn...
- toolboxnj, on 07/03/2009, -0/+4I gain comfort hearing these stories about the ineptitude of government, in particular the executive branch. You know, the guys with the guns.
- iamacyborg, on 07/03/2009, -0/+3Government regulators simply do not have the right set of incentives to make decisions like this. The best organization for researching a fund would be one that is financed directly by those with residual interest in a fund's profits, with a strong interest in building a reputation in order to gain business in the future. Hardly anyone does research because supposedly the SEC is doing it for them.
Another conflict of interest in that since regulators get paid considerably less than those they are regulating, they often transition into a position in the industry, so they are not incensed to be "tough", rather to work with the firms they are supposedly regulating and avoid stepping on the toes of any potential future employer. - faskippy, on 07/03/2009, -0/+3149 years, 363 days to go, (sigh).
- iamacyborg, on 07/03/2009, -0/+3Maybe but not necessarily. There are other incentives besides an outright bribe; for example a lot of regulators end up getting a job in the industry and their chances of doing so are reduced considerably if they make trouble.
- RiMac, on 07/03/2009, -0/+3What a joke.
- EddiePotato, on 07/03/2009, -0/+3It's still very relevant news considering the US is in the middle of a financial ***** that he had a small part in accelerating. And reexamining events leading up to disaster after the fact is known "learning from your mistakes", in order to avoid repeating them.
- brucealmighty, on 07/03/2009, -0/+2It was my ex-congressman, Christopher Cox, who was in charge of the SEC during this period. I was glad to see him get another job that got him out of CA but apparently he was even more lame at the SEC than he was as a congressman. Of course no one person is entirely to blame for the Madoff fiasco....but if there were only one it would be Cox, who totally and utterly failed to perform his duties as head of the SEC and essentially just ignored all allegations of fraud or misconduct. No doubt that's why he got the job. Why isn't he being called to answer before any congressional investigators?
- vinod1978, on 07/03/2009, -0/+2That whole volunteer reporting thing the SEC had going on was ridiculous.
- everybodyruns, on 07/03/2009, -0/+2***** the SEC. They're all SportsCenter ever talks about.
- EddiePotato, on 07/03/2009, -0/+2The Swiss ones.
- edwarddouglas, on 07/03/2009, -0/+2Most of the Madoff investors knew something was wrong too because of his unusually high returns. They knew something illegal was going on but they invested with him anyway. I guess its ok if your broker cheats if you can profit from it. Not ok if you get cheated yourself.
- inactive, on 07/03/2009, -1/+2SEC Lawyer: Mr. Madoff there seems to be a discrepancy with some of your dealings.
Madoff: Really? What are the chances that a guy like you made a mistake about a guy like me?
SEC Lawyer: Well, that's difficult to say, I mean, we don't really...
Madoff: Hit me with it! Just give it to me straight! the least you can do is level with me. What are my chances?
SEC Lawyer: Not good.
Madoff: You mean, not good like one out of a hundred?
SEC Lawyer: I'd say more like one out of a million.
[pause]
Madoff: So you're telling me there's a chance... *YEAH!* - inactive, on 07/03/2009, -0/+1The fish rots from the head down.
SEC is filled to the gills with izzies. - graemee, on 07/03/2009, -0/+1If only that were true.
- KibblesnBitts, on 07/03/2009, -0/+1No. He didn't. That's why he's in jail until he's 221 years-old.
- deema1, on 07/03/2009, -0/+1The solution for consistently inept and corrupt government regulation? More government regulation.
- treehugger87, on 07/03/2009, -0/+1More likely the SEC was under orders from the Executive branch to ignore certain crimes.
- treehugger87, on 07/03/2009, -0/+1Sure they have the right set of incentives. If they investigated stuff like this while Bush was in office they would have lost their jobs and had their names run through the muck, if they were allowed to live at all.
- JanSimpson, on 07/03/2009, -0/+0Nice comments - that is is my problem with the whole mess. No one and I mean no one could possibly think gains could happen that many times without questioning or bragging online, to the media etc. Where was the media, you mean none of the media nor Congress had money with Madoff? I think that smells higher than anything else. Why were the celebrities who got duped not crying more? The media showed poor people who lost everything and are on food stamps - why not put Congress or Celebrities out there as well? The Celebrities use the media for Charities, Political aspirations all the time. So, I think this was an inside job - and Madoff became the fall guy and hopefully no one ask questions...and they didn't liberals are fine as long as they can blame someone else for their lot in life.
- walruspanzer, on 07/03/2009, -8/+2He Madoff with the money!
- angryguy2009, on 07/03/2009, -6/+0Buried for being old news AND Monday-morning quarterbacking.
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