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Obama's Pick For SEC Chair Didn't Catch Madoff While At Finra
The Wall Street Journal has a deeper look at the various government investigations into Bernard Madoff's business, stretching back over the last 16 years -- all of which failed to detect the alleged "$50 billion ponzi scheme" that Madoff is said to have been running.
Among other nuggets, the Journal reports:
The failure to stop Mr. Madoff also is an embarrassment for Mary Schapiro, the Finra chief who has been nominated by President-elect Barack Obama as the next SEC chairman. Finra [the Financial Industry Regulatory Authority, an industry-run watchdog for brokerage firms] was involved in several investigations of Mr. Madoff's firm, concluding in 2007 that it violated technical rules and failed to report certain transactions in a timely way.Ms. Schapiro declined to comment. Mr. Cox has previously acknowledged mistakes by the SEC. The agency declined to comment.
Close SEC watchers generally have said they expect that under Schapiro, the agency will be a more vigilant watchdog than it has been under President Bush's various chairs, culminating with Chris Cox.
Still, Finra's failure, under Schapiro, to catch Madoff is another reminder that, even though the SEC's problems were in part a result of the pure free-market ideology to which the Bush administration largely subscribed, those problems likely won't immediately be solved by the change of administrations.
Josh
Zachary
It seems as though the only change we will be getting is a change in mobsters at the higher levels. I sincerely do not believe it is Obama's fault.... rather it is going to be pretty tough finding ANY folks with a lot of experience in Washington who haven't been corrupted in BOTH parties, because BOTH parties have been filled with everyone BUT patriots for many many years.
Obama is a minor player in this.
WE the VOTERS are at fault for continuing to elect OUR scoundrels into office... actually believing they will be looking out for us common folk more than THEIR scoundrels... IMHO
January 5, 2009 12:44 PM | Reply | Permalink
Wonder how much Schapiro was paid to keep her pie-hole shut.This is what passes for Govt,pure corruption,if Schapiro has any decency she would do the honorable thing & step aside like BRichardson.But she seems shameless & without conscience.
January 5, 2009 12:48 PM | Reply | Permalink
the name is Schapiro... kinda like Madoff.
And Panetta. And Paulson. And Bernanke.
Either you are very very dim, or very very timid
January 6, 2009 8:28 AM | Reply | Permalink
WE the VOTERS are at fault for continuing to elect OUR scoundrels into office... actually believing they will be looking out for us common folk more than THEIR scoundrels... IMHO
Posted by johnnydoughey
Well said johnnydoughey & as an example look at Reid ,Pelosi,Charlie Rangel,DFeinstein,Steny Hoyer & Rockefeller just to name a few.The most shameful incident of the last few years is torture & the reason investigations can't go forward is because many in the Oppo party (DEM)leadership were behind the scene giving tacit approval to the torture of innocent civilians.
January 5, 2009 1:08 PM | Reply | Permalink
"...under Schapiro, the agency will be a more vigilant watchdog than it has been under President Bush's various chairs..."
Now that really wouldn't take very much oversight at all.
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January 5, 2009 2:17 PM | Reply | Permalink
"Failure" presumes that she was authorized to look deeper than she or her people did. FINRA is not a Governmental Authority. Was she personally involved in any Madoff reviews while chief?
January 5, 2009 3:06 PM | Reply | Permalink
My faith in Government as a reputable entity to be trustd is at rock bottom. Its up to Obama to change that.
January 5, 2009 4:30 PM | Reply | Permalink
My faith in Government as a reputable entity to be trustd is at rock bottom. Its up to Obama to change that.
January 5, 2009 4:33 PM | Reply | Permalink