Bill
12-15-2008, 05:34 PM
See, Repuiblican deregulation is a GOOD THING! How else could the rich make 8% a year, year after year?
I don't even wanna think what my shitty savings account makes - but I'm not a smart rich guy, I'm just a lower class schlub.
http://www.marketwatch.com/news/story/Madoff-arrest-raises-questions-about/story.aspx?guid=%7BE2002EFA-C24D-453B-BF6C-EC67992A0A3C%7D
<B> WASHINGTON (MarketWatch) -- The arrest of investment manager Bernard Madoff on allegations that he ran a $50 billion "Ponzi scheme" raises questions about the effectiveness of the Securities and Exchange Commission's oversight of the investment management industry.
The SEC and Department of Justice on Friday launched parallel suits against Madoff, 70, who oversaw Bernard L. Madoff Investment Securities LLC. Both agencies are trying to identify if any assets remain, but regulatory observers argue that there were several warning signs that should have triggered an SEC investigation much earlier.
The Madoff scandal couldn't have come at a worse time for the hedge-fund industry, which already is reeling from record losses this year.
Madoff's investment-advisory business was subjected to oversight by the SEC in 2006, but a regulatory observer familiar with the fund said that agency staffers in the SEC's Office of Compliance, Inspections and Examinations never conducted a serious scrutiny of the fund.
"The big concern is whether the SEC has adequate resources and the will to identify this kind of fraud," said Consumer Federation of America director Barbara Roper.
The agency is charged with examining the books of new funds registered with the SEC, with follow-up reviews taking place every three years for high risk institutions. Registered investment advisers that fell under the category of low risk are only subject to random investigation. There are no details about how frequently these fund managers are reviewed.
Columbia Law School professor John Coffee said that the agency is overworked and typically examines only 10% of the new funds that are registered.
He added that the SEC should have looked more carefully at Madoff, because he oversaw a huge quasi-hedge fund that was audited only by a tiny New York-based firm, Friehling & Horowitz. Madoff's fund also did not employ a reputable outside custodian, which is an institution that holds the assets of the fund. Finally, Coffee noted that a rival to Madoff raised concerns about the fund in 1999.
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I don't even wanna think what my shitty savings account makes - but I'm not a smart rich guy, I'm just a lower class schlub.
http://www.marketwatch.com/news/story/Madoff-arrest-raises-questions-about/story.aspx?guid=%7BE2002EFA-C24D-453B-BF6C-EC67992A0A3C%7D
<B> WASHINGTON (MarketWatch) -- The arrest of investment manager Bernard Madoff on allegations that he ran a $50 billion "Ponzi scheme" raises questions about the effectiveness of the Securities and Exchange Commission's oversight of the investment management industry.
The SEC and Department of Justice on Friday launched parallel suits against Madoff, 70, who oversaw Bernard L. Madoff Investment Securities LLC. Both agencies are trying to identify if any assets remain, but regulatory observers argue that there were several warning signs that should have triggered an SEC investigation much earlier.
The Madoff scandal couldn't have come at a worse time for the hedge-fund industry, which already is reeling from record losses this year.
Madoff's investment-advisory business was subjected to oversight by the SEC in 2006, but a regulatory observer familiar with the fund said that agency staffers in the SEC's Office of Compliance, Inspections and Examinations never conducted a serious scrutiny of the fund.
"The big concern is whether the SEC has adequate resources and the will to identify this kind of fraud," said Consumer Federation of America director Barbara Roper.
The agency is charged with examining the books of new funds registered with the SEC, with follow-up reviews taking place every three years for high risk institutions. Registered investment advisers that fell under the category of low risk are only subject to random investigation. There are no details about how frequently these fund managers are reviewed.
Columbia Law School professor John Coffee said that the agency is overworked and typically examines only 10% of the new funds that are registered.
He added that the SEC should have looked more carefully at Madoff, because he oversaw a huge quasi-hedge fund that was audited only by a tiny New York-based firm, Friehling & Horowitz. Madoff's fund also did not employ a reputable outside custodian, which is an institution that holds the assets of the fund. Finally, Coffee noted that a rival to Madoff raised concerns about the fund in 1999.
</B>