Madoff determined to strike in the US

by twit

An Op-Ed in the New York Times on January 3, 2009 says that on Nov. 7, 2005, the SEC received a seventeen page document laying it all out about Madoff, including this:

In the “Highly Likely” scenario, wrote Mr. Markopolos, “Madoff Securities is the world’s largest Ponzi Scheme.”

and 2005 wasn’t the first time:

Harry Markopolos sent his report to the S.E.C. on Nov. 7, 2005 — more than three years before Mr. Madoff was finally exposed — but he had been trying to explain the fraud to them since 1999.

I am curious about whether Mr. Markopolos tried to contact anybody else.

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Is hell freezing over?

by lestro

It appears at least one ideologue is beginning to realize the role he played in the current financial crisis:

Christopher Cox, the chairman of the Securities and Exchange Commission and a longtime proponent of deregulation, acknowledged on Friday that the voluntary supervisory program of Wall Street’s largest investment banks had contributed to the global financial crisis and abruptly shut the program down.

wow.

“The last six months have made it abundantly clear that voluntary regulation does not work,” Mr. Cox said in a statement. The program “was fundamentally flawed from the beginning, because investment banks could opt in or out of supervision voluntarily,” he added.

“The fact that investment bank holding companies could withdraw from this voluntary supervision at their discretion diminished the perceived mandate” of the program, and “weakened its effectiveness.”

wow again.

Unfortunately, Cox is also the guy that John McCain, champion de-regulator, wants fired.

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