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Duck-shoving, ass-covering highlight hearing
The Fooles on The Hill — this time d/b/a Chris Dodd’s Senate Banking Committee — took another swipe at the Madoff Maelstrom Tuesday, with a hearing prosaically entitled ‘Regulatory and Oversight Concerns and the Need for Reform.’ The gratuitous insults to animal dignity came, predictably, from two senior US Securities and Exchange Commission executives still showing the tire marks from the bus they were thrown under — mostly deservedly, but still — by the unlamented former chairman.
Duck shoving?

Before I go any further I want to thank the Committee for understanding that because of our collective desire to preserve the integrity of the investigative and prosecution processes there are matters that I cannot discuss today......

...I cannot comment on the pending civil and criminal litigation or the underlying investigations in order to avoid jeopardizing the ongoing legal and investigative processes. In addition, I cannot comment on any historical SEC enforcement investigations of Mr. Madoff, his firm or associated persons because the information is non-public and the SEC's Office of the Inspector General is actively investigating any such prior matters.

Linda Chatman Thompsen
Director, Division of Enforcement
US Securities and Exchange Commission
Jan. 27 2009

Thanks for that Linda. You can trot back to your office and get to work on your resume.
Ass-covering?

This is an ongoing matter, under investigation by both the SEC's Enforcement Division, and with respect to past regulatory activities, by the SEC's Office of Inspector General. I am not authorized to provide specific information about past regulatory oversight of this firm...

The Commission has 425 staff dedicated to examinations of registered investment advisers and mutual funds, and approximately 315 staff dedicated to examinations of registered broker-dealers...

...The Commission has large and diverse examination responsibilities. The registered population consists of approximately: 11,300 investment advisers — a population that has grown rapidly in recent years, as further described in this testimony; 950 fund complexes (representing over 4,600 registered funds); 5,500 broker-dealers (including 174,000 branch offices and 676,000 registered representatives); and 600 transfer agents...

...Given the number of firms subject to examination oversight and the breadth of their operations, examinations are not audits and are not comprehensive in scope.

Lori A. ‘Teflon’ Richards
Director, OCIE
US Securities and Exchange Commission
Jan. 27 2009

Thanks for that Lori. You can trot back to your office and get back to box-checking the work of your dedicated, hardworking, and keenly committed fraud-focused box-checking Clouseaus. (Given your unquestioned survival skills — mutual fund market-timing scandal q.v. — that appointment for life is probably not in danger.)
DealBook (NYT) Jan. 27 2009

Regulatory and Oversight Concerns and the Need for Reform
Senate Banking Committee
Jan. 27 2009
Source: Madoff Inquiry: Animal Indignities Edition