US Securities and Exchange Commission enforcement chief Linda Cheat’em Thomsen was on her high horse again Tuesday, with a stamped hoof and a whinny in the general direction of some knuckleheads who cleaned up $900,000 on Restoration Hardware’s privatization last year:
“Combating trading ahead of mergers and acquisitions is among the Commission’s highest priorities,” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement. “Insider trading distorts our nation’s markets, and we will aggressively pursue those who seek to take advantage of secret information obtained from company insiders.”
All well and good, but for The New York Times’ report that the agency’s inspector general H. David Kotz has turned in a 191-page not-yet public report that exonerates former SEC investigator Gary Aguirre for trying to crash the alleged (but strongly denied) whisper party attended by those two old pals, John Mack, now chief executive of Morgone Stanley (MS), and Art Samberg, founder of hedge fund Pequot Capital Management.
The inspector general primarily sided with Mr. Aguirre’s version of events, accusing enforcement officials of failing “in numerous respects” to properly manage him and for allowing “inappropriate reasons to factor into its decision to terminate him.” As a result, Mr. Kotz recommended possible disciplinary action against the director of enforcement, Linda Thomsen; Mr. Aguirre’s direct supervisor, Robert Hanson; and the assistant director of enforcement, Mark Kreitman...
...John J. Nester, an SEC spokesman, said that the agency’s review process would now determine “appropriate personnel actions.”
“Appropriate personnel actions” should include the long overdue ceremonial clearing of Ms. Thomsen’s desk, and her removal to the taxi stand outside Union Station. From where, of course, she can be driven to the upper echelons of a major corporation, hedge fund or law firm. Be sure only that the circle will be unbroken.
SEC Charges Former VP, Three Friends in Insider Trading Scheme
SEC press release Oct. 7 2008
This article has 2 comments:
In this time of national crisis, I believe we should turn to the man who guided us through one of our biggest financial upheaval. Anyone got Harvey Pitt's number? I remember him with his United States Calvary Hat, standing on the beach while we were taking direct shelling from the enemy, and under his breath, muttering, I love the smell of burning Enron in the morning. Wait, that was Robert Duvall in Apocalypse Now. Sorry. It's easy to get the two confused sometimes, what with me blaring Ride of the Valkyries on my stereo every time a government employee shows up on CNBC.
IMO, during his tenure at the SEC, he's accomplished absolutely nothing!
Despite a surge in public awareness about how absurdly corrupt Wall St has become, and a huge outcry for a related cleanup; Cox has persistently sided with the greed-driven Bad Guys and denied that any problems existed.
If you want an example, consider the subject of naked shorting. For years Cox and his band of crooked cronies have insisted that naked shorting is not a problem, that companies claiming to be naked shorted into the ground are just trying to justify their failures, and that allegations of short selling dirtbags having influence over media reporting and SEC investigations are groundless.
But then when the shares of scum-sucking US-based financials become the target of precisely such evil activities, Uncle Christopher jumps into action, identifies an evil practice as if it's never happened before, and issues an Emergency Order that protects only his Bad Guy friends from “abusive” naked short selling.
What a Blithering Dunce you are Cox!!
And as for the SEC's handling of the Gary Aguirre-Pequot Capital Management-John J Mack matter; Cox should resign for being complicit in the SEC’s related in-house cover-up.
Anyone who watched the congressional testimony concerning this matter could see that the SEC's primary objective was to cover its filthy tracks, not to get to the bottom of what happened and to prevent a reoccurrence.
The only thing Cox, who had just been appointed SEC Chairman, seemed to care about was shielding SEC employees and the elitists they protect.
To conclude, in this reader’s opinion, Cox is an obviously-conflicted piece of human refuse; and he should do the US equity markets a huge favor and swiftly resign.
Sparky