SEC - serious about introspection

Here is some news from across two ponds. An internal review of the US Securities and Exchange Commission has resulted in a stinging report about its working with respect to the biggest fraud in the history of mankind (in dollar terms). Watch this space once the report is made public.

"The inspector general of the Securities and Exchange Commission delivered what's expected to be a stinging report late Monday on the agency’s failure to prevent or detect Bernard Madoff’s $65 billion Ponzi scheme.

SEC inspector general H. David Kotz launched an investigation into the agency’s Madoff dealings in December, shortly after federal agents arrested Madoff. Madoff, who turned himself in to the authorities, pleaded guilty in the case and is now serving a 150-year prison sentence.

In a statement issued Monday, Kotz said, “The Securities and Exchange Commission Office of Inspector General [OIG] has issued today a Report of Investigation entitled, ‘Investigation of Failure of the SEC to Uncover Bernard Madoff’s Ponzi Scheme.’ The Report of Investigation is an exhaustive summary of the investigative work that the SEC OIG has conducted over the past 8 months and has been issued directly to the Chairman of the SEC. It is a comprehensive review of the complaints issued to the SEC regarding Madoff, and the investigations and examinations that the SEC conducted of the Madoff firm. The Report is 450 pages long, and contains over 500 exhibits.”