The reality is, Madoff is just the skeleton exposed from a closet full of skeletons at the SEC and for the most part CNBC has protected each of those that committed fraud and got away with it. More importantly, Madoff exposed his awareness of the incompetence at the SEC which allowed him to expand the fraud. Would it come as a surprise that the major players on Wall Street similarly identified this flaw and used it to their advantage?
Yesterday Charlie Gasparino spoke on CNBC and claimed that Patrick Byrne was right all along about naked short selling. Problem is, for the past 5 years Gasparino and the rest of the CNBC mouthpieces were hauling in the short sellers to make baseless accusations against Byrne and his comments. I want to know where Charlie is today in identifying who is committing the fraud now that he admits it is real and harmful.
CNBC is part of the problem and not the solution because they depend heavily on the information flow from criminals. How many "Madoff's" does CNBC interview each week or each month touting their success when the success is based on fraud and deception. CNBC can't blame the SEC for that, they have to take the blame for not looking deeper into their sources.
