Madoff Astonished SEC Didn’t Verify His Claims

But let us turn to America’s equivalent of the FSA – the SEC.

Front page in The Washington Post: “The Madoff Files…A Chronicle of SEC Failure…”

According to the Post, Madoff was “astonished” that the SEC didn’t bother to verify whether he was actually doing the billions of dollars worth of trades he claimed to be doing.

In response, the SEC says it “doesn’t have the resources” necessary to keep an eye on “the exploding number of financial firms.”

And according to today’s International Herald Tribune, Senator Schumer has suggested a way for the SEC to increase its budget by 75%. The idea is to turn it into a kind of tax farmer…with the right to earn money directly from the industry it is supposed to regulate. There’s an idea for you – a very bad one. It would give the SEC more money to waste…allowing it to hire more people to meddle in the marketplace…giving investors more illusions that they are playing ‘on a level playing field’…and ultimately corrupting the financial sector even more than it already is.

Which brings us back to our original question: what was the SEC doing?

The Madoff group was very suspiciously doing billions in trades with remarkable profitability and consistency. Every trader in New York knew something was up. What was so intriguing to SEC eyes…when they weren’t keeping their eyes on Madoff?

We can tell you. Us! Your editor and his colleagues. No kidding. We’ll give you the full story next time. Promise.

Bill Bonner
for Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.
Bill Bonner

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1 Comment on "Madoff Astonished SEC Didn’t Verify His Claims"

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What was the SEC doing Bill?, the same I suggested many months ago about the FSA,… out to a very long lunch, all expenses paid , or over staffed and under worked, asleep at the wheel, lost the keys to the office. Its all a bit sus isn’t it?.

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