Madoff and the SEC
Yesterday's Washington Post featured a story titled "SEC Staffer Had Warned of Madoff." A staff attorney had warned of irregularities in Madoff's books as far back as 2004, but was "told to focus on an unrelated matter."
But with the agency under pressure to look for wrongdoing in the mutual fund industry, she wasn't able to continue pursuing Madoff, according to documents and two people familiar with the investigation, and her team soon concluded its work on the probe.
The full story is worth a read -- find it here.
This is sure to fuel (more) anger and cynicism about the SEC. But it also shows that the agency is understaffed -- and it forces us to wonder how it could handle an expanded role (and power/influence), as some lawmakers are calling for.
-- Brian Richards