Wednesday, December 17, 2008

SEC Cox's Startling Admission

In a statement SEC Chairman Cox has admitted that "credible and specific allegations regarding Mr. Madoff’s financial wrongdoing, going back to at least 1999, were repeatedly brought to the attention of SEC staff, but were never recommended to the Commission for action."

So, he has launched an internal investigation, blah, blah blah. His press release is at the SEC website.

Amazing. While the Staff is busy investigating small broker dealers for bookkeeping errors, is Chairman Cox really telling us that his staff ignored "credible and specific allegations" that ultimately led to the largest securities fraud in this nation's history?

Of course, ignoring those allegations had nothing to do with the fact that Madoff was the former president of NASDAQ, and the chairman of various boards. We all know it is only the small firms who cause the problems, right?

Can you say Madoff? Can you say Dreier?

I thought you could.
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