The SEC Stooges

I hate to provide the opponents of government with a good argument because I generally believe government to be good, not bad.  I must say, however, that the Security and Exchange Commission’s Inspector General’s report on the failure of multiple SEC investigations to uncover the Bernard Madoff Ponzi scheme reads like a Three Stooges comedy skit.

After reading the report, you will not want to put government officials in charge of anything – even though there’s really no choice if we’re going to try to protect innocent investors from crimes like Mr. Madoff’s.  Had Madoff investigators done the most basic thing – verifying that allegedly profitable trades actually occurred – the Ponzi scheme would have unraveled years earlier.  But none of the SEC investigators – except one who just ignored the results – did this most basic thing.

I did not have a lot of confidence in the SEC before this report; now I have virtually none.  This country’s financial regulatory system needs a serious overhaul.

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~ by Dennis Taylor on 5 September 2009.

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