Bernie Madoff Was Almost SEC Chairman?

Although SEC Inspector General David Kotz’s exhaustive 450-page report on why the SEC failed to uncover Bernie Madoff’s Ponzi scheme has not yet been released, the executive summary makes abundantly clear that the agency bungled numerous investigations and failed to heed numerous warnings about Madoff’s dubious activities.

The summary also contains a nugget that, if true, is frightening beyond belief. Madoff apparently confided to an investigator that he was on the short list of replacements for SEC Chairman William Donaldson. Weeks before the appointment was publicly announced, Madoff also told the investigator that Christopher Cox would get the job .

This matter is worthy of further investigation.

Comments

[Roger Knights:]

Stop the world, I want to get off.

Sep 03 06:58 AM

[AuGod!:]

Bernie Madoff Almost SEC Chairman. "Almost" could apply to grenades and horseshoes but not this. If Bernie had been offered the SEC position and had he accepted, "who" would have run his ponzi businesses?

Sep 03 07:51 AM

[Graham and ...:]

Unfortunately, this is all to believable, given Madoff's connections and (former) reputation. The fox was almost hired to guard the henhouse.

Sep 03 09:12 AM

[Aaron Ashcraft:]

Incredible story, including the early/accurate announcement of Christopher Cox appointment as SEC Chair. Under Cox's benign leadership, Bernie Madoff kept his ponzi scheme going and naked short fraud gained a stronger foothold. Probably Madoff would have been a better SEC chairman!!!!!!!!!!!!!

Sep 03 09:31 AM

[Nettligent:]

The financial world would be much better if Bernie Madoff becomess SEC Chairman.
Christopher Cox and his cronies were and are useless, incompetent, and full of ego: snakes guard hen house.
SEC is like Mafia, has a huge budgets and keep growing every single year. When you review their salary, benefits, and compensation..Taxpayers will not believe what they see.
Time to shut down SEC for good and rebuild a new team.

Sep 16 05:09 AM