An external report has criticized former SEC inspector general David Kotz for breaching ethics...

An external report has criticized former SEC inspector general David Kotz for breaching ethics rules by supervising investigations that involved people with whom he had "personal relationships." The probes include one into the SEC's failure to catch Bernard Madoff. However, SEC bete noire Charles Grassley points out that the report found that the watchdog's audit and investigative work "was not compromised."

Comments (7)
  • TomasViewPoint
    , contributor
    Comments (4911) | Send Message
    If someone is supervising investigations of people that he/she has personal relationships then the process is already compromised and the investigation is worthless.


    Put another way how is an investigation going to bring criminal charges against the friends of the supervisory official? The presumption is that everyone is innocent because they are friends.
    7 Oct 2012, 09:41 AM Reply Like
  • wyostocks
    , contributor
    Comments (9113) | Send Message
    " "was not compromised." "


    Really now.
    7 Oct 2012, 09:56 AM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1124) | Send Message
    Madoff gets off with a 50 billion plus fraud aided and abetted by the SEC, while I get parking tickets. This system is sick and I am mad as hell.
    7 Oct 2012, 10:39 AM Reply Like
  • june1234
    , contributor
    Comments (4353) | Send Message
    Yeah Madoff spent many years scamming under their noses but the SEC's personal relationship with Madoff did not compromise their investigations of Madoff. I'll buy that. Madoff also ran the Nasdaq at one point. Former Goldman Sachs CEO Paulson was put in charge of the US treasury dept about the same time he helped bail out among other others his former company. Rubin also of Goldman Sachs and Citigroup was treasury secretary under Clinton. I cant see how anyone could see any conflicts of interests with any of these people and the government depts. they are put in charge of.One big happy family,
    7 Oct 2012, 11:04 AM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
    What was once government of the people, by the people, for the people is now government of the bureaucrat, by the politicians, for the financial elite. (with both bureacrats and politicians financially benefitting as they go along).


    Bureaucrats and other government employees make more than those they serve, as do the politicians, and the financially elite already do. The last society that had this structure collapsed....... it was called the USSR. Where the best "regular" jobs were in the government and held by communist party members only. The politicians were basically the elite of the party and had positions for life (unless they did something stupid like actually question the party's position on anything), and their friends/relatives were put in the best positions in industry and those industries were monopolies. And corruption abounded.


    We've caught up. Corruption is everywhere - its just we "legalize" it here in the USA. So its ok to buy politicians. Its legal to give jobs to their husbands and wives and kids and cousins and in-laws. And in return its legal to grant permits, build roads, pass laws limiting competition, grant contracts, etc, etc, etc.


    We have big government protecting big business and the elite. And day by day our freedoms are taken away in the name of... safety... entitlement... fairness... etc, etc. Each statement on its own sounds nice and comforting. But what isn't comforting is the ever expanding reach of government into every area of our lives and into every area of our economy.
    7 Oct 2012, 02:02 PM Reply Like
  • Joe Dirnfeld
    , contributor
    Comments (1124) | Send Message
    Brilliantly expressed, if you don't mind I'll borrow your words.
    8 Oct 2012, 07:59 AM Reply Like
  • Ted Bear
    , contributor
    Comments (700) | Send Message
    Wow! I have always feared that i was alone in my disbelief of the moral collapse of our "leaders' and regulators. You guys have succinctly put into words what is obvious to any thinking person. If you came from the industry, or have family or close friends in that industry, then by definition you cannot have ANY role in regulating the behavior of that industry. Isn't this just obvious?


    One of my penultimate memories is off Dodd and Schumer pretend 'grilling' the great tanned one ( Mazillo) when all along Dodd knew that he had been given special treatment by Mazillio in the acquisition of a home mortgage. How can anyone with a moral compass not excuse themselves from such events?


    After we suffer the ultimate economic collapse, these things will become obvious to everyone during the post mortum. Wouldn't it be tremendous if we had leadership now that could step out ahead of the crowd, or is the rot that deep in Washington that anyone attempting to be a Serpico would literally be snuffed by sundown?
    7 Oct 2012, 02:32 PM Reply Like
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