Posts Tagged ‘bernie madoff’

A Sign that things will get WORSE before they get better….

November 14, 2011

I am an optimist at heart.  But, I also look around and see reality.  Here is an article about the Bernie Madoff fiasco, from the Washingtomn Post, that gets my blood boiling.  And the specific quote:

“But the chairman decided not to fire the employee, because doing so “would harm the agency’s work,” SEC spokesman John Nester said.”

Would harm the agency’s work??  Are you kidding me???

How many OUTSIDE warnings did the SEC receive about Madoff??  MULTIPLE!!!

“The commission said Tuesday night that it received credible allegations about the scheme at least nine years ago and would immediately open an internal investigation to examine why it had failed to pursue them aggressively.”  (From the NYTimes)

“The doomed prophet has taken modern shape in Harry Markopolos, the Boston accountant who blew the whistle on Bernie Madoff. The SEC ignored him.”  (From Gawker)

How much does this “agency” have for a budget??  $1.19 BILLION!!!

“The $1.19 billion the committee approved fell short of the Obama administration’s request by $222.5 million.”

OK, to summarize.  Madoff STOLE from/COST investors that were supposed to be PROTECTED FROM FRAUDSTERS, like Bernie Madoff, by the SEC, BILLIONS of dollars.  And yes that was BILLIONS of dollars.  Over DECADES!!!  The SEC received CREDIBLE ALLEGATIONS about the fraud from outside observers.  The SEC did NOTHING!!  The SEC has a budget of $1.19 BILLION that comes from the fees and transaction costs associated with investing in securities.  In other words, WE (stock market investors, or ANYONE that has a 401-k retirement account, invests in mutual funds, buys stocks, etc.) are paying the budget of the SEC, so that THEY CAN PROTECT US FROM CON ARTISTS, like Bernie Madoff or Allen Stanford, etc.

AND NO ONE GETS FIRED FOR FAILING TO DO THEIR JOB, which cost some investors BILLIONS of dollars??  WHY do we need the SEC??  Eliminate the budget of the SEC.  Hey look, I just eliminated $11 BILLION from the deficit over the next ten years!!

Until people are held RESPONSIBLE for THEIR inactions or incompetence, things will continue to get WORSE.