The SEC chairman blames his staff of career regulators (staff attorneys) for not investigating Madoff. I guess that’s $50 billion bucks that won’t be stopping at the top.
According to an AP article posted on Yahoo http://news.yahoo.com/s/ap/20081217/ap_on_bi_ge/madoff_scandal_26
“In a stunning rebuke, the Securities and Exchange Commission chairman blames his career regulators for a decade-long failure to investigate Wall Street money manager Bernard L. Madoff, now accused of running one of the largest Ponzi schemes ever.
On Tuesday night, Cox ordered an internal investigation of what went wrong and offered a scathing critique of the conduct of his staff attorneys. He said they never bothered to seek a formal commission-approved investigation that would have forced Madoff to surrender vital information under subpoena. Instead, the staff relied on information voluntarily produced by Madoff and his firm.
Credible and specific allegations regarding Madoff’s financial wrongdoing going back to at least 1999 were repeatedly brought to the attention of SEC staff, said Cox.”
But the Securities Investor Protection Corporation has a fund to bailout suckers victims, unfortunately the Madoff Ponzi scheme is so big, the fund is a drop in the bucket by comparison;
“SIPC, created by Congress and funded by the securities industry, can give customers up to $500,000 if it is determined their money was stolen. SIPC has about $1.6 billion to make payouts, which means that amount could quickly be depleted in the Madoff case where losses could reach $50 billion. That figure comes from the SEC’s court complaint, which quotes Madoff admitting to losses in that amount to two senior employees of his firm before his arrest last Thursday.”
So who will get reimbursed? It would be difficult to choose among all those needy rich liberals. Why do I have a feeling that a special government bailout may be coming for the Madoff investors? Isn’t that the point of establishing SEC blame? After all it is the SEC’s fault the money was stolen because they let Madoff get away with it and these victims of their own greed shouldn’t have to suffer or assume any personal responsibility for managing their own wealth. The SEC is supposed to protect fools and their money. The liberal’s logical solution is always; they failed to do their job, so someone has to pay, it will have to be the taxpayers. Just put the $50 billion on our running bailout tab.
Meanwhile, Madoff is free as a bird on $10 million bail … hmmm … makes you wonder whose money paid for that.