Regulators: An Apology

by: Greg Newton
Readers of these and other pixels may have garnered the entirely mistaken impression that US financial industry regulators demonstrated stunning incompetence in their non-pursuit of various allegedly fraudulent investment schemes.

Such attacks, including the vicious assault by former SEC chairman Christopher Cox involving the word “Madoff” and the phrases “deeply troubling,” “credible and specific allegations,” “repeatedly brought to the attention of SEC staff,” and “apparent multiple failures over at least a decade to thoroughly investigate,” were, in light of new information, unfair, unsubstantiated, inappropriate and defamatory. Specifically:

NEW YORK (AP) — The trustee in charge of untangling the mess left behind by Bernard Madoff told a packed auditorium Friday there was no indication the disgraced money manager had bought securities for his clients for over a decade.

“We have no evidence to indicate securities were purchased for customer accounts” in the past 13 years, said Irving Picard, the court-appointed trustee overseeing the liquidation of Bernard L. Madoff Investment Securities LLC.

Obviously, neither FINRA (Queen Mary Schapiro, chief executive or similar since 1996 (13 years, if you’re counting)) nor the SEC (Queen Mary, chairman) have jurisdiction over a business that does not purchase securities for customer accounts.

Further, this information provides a full and satisfactory explanation of the allegations by purported whistleblower Harry Markopolos that, inter alia, Madoff’s trading of his customer funds was invisible to the markets.

Any implication that the loyal, hard working and intellectually gifted staff of both FINRA and the SEC could not pour piss out of a boot if the instructions were written on the heel is unreservedly withdrawn with our deepest apologies for any distress that may have been caused.

by Tom Hays
AP via Breitbart Feb 20 2009

by Beth Healy
The Boston Globe Feb. 21 2009


by Stephen Labaton
The New York Times Feb. 22 2009

Don’t Blame Me: Cheung
by Lorena Mongelli and Dan Mangan
The New York Post Jan. 7 2009