SEC staffers need to be told not to destroy Madoff documents.

check out the date on this. When they convene...............

By God. all it took was the financial collapse of the Western World, and these servants of the people are on this like sansabelt slacks on Jackie Gleason.


Source: http://www.bloomberg.com/apps/news?pid=20601087&sid=adTqu0BDRIR4&refer=home

Madoff Hearing Set as House Weighs Regulatory Changes (Update2)



By Ian Katz

Dec. 29 (Bloomberg) -- The House Financial Services Committee will hold a hearing Jan. 5 to examine the $50 billion Ponzi scheme allegedly run by money manager Bernard Madoff, U.S. Representative Paul Kanjorski said.

“These proceedings will help us to discern whether or not the Securities and Exchange Commission had the resources needed to get the job done, how such a sizable scheme could have evaded detection for so long, and what new safeguards we need to put in place to protect investors,” Kanjorski, a Pennsylvania Democrat who leads a subcommittee that oversees capital markets, said today in an e-mailed statement.

Madoff, 70, was arrested Dec. 11 after telling his two sons and federal investigators that he had been using money from new investors to pay off old ones in what may be the biggest such swindle in history. Madoff’s clients had about $37 billion with his New York-based firm, according to Bloomberg News data.

“Sadly, Mr. Madoff’s actions have further weakened the already-battered investor confidence in our securities markets,” Kanjorski said. “We can, however, better understand how to reform the U.S. financial system by carefully examining this Ponzi scheme.”

Congress is planning a regulatory overhaul after a financial crisis that has led to more than $1 trillion in writedowns and credit losses since 2007. SEC Chairman Christopher Cox and Treasury Secretary Henry Paulson have endorsed combining the SEC with the Commodity Futures Trading Commission.

Cox said Dec. 17 his agency will conduct an internal probe to review “deeply troubling” revelations that it failed to act for almost a decade on “credible and specific allegations” of wrongdoing by Madoff.

To contact the reporter on this story: Ian Katz in Washington at ikatz2@bloomberg.net.
Last Updated: December 29, 2008 17:39 EST
 
Quote from omegapoint:

How about an attempt at investigating why Elliot Spitzers investigation never got off the ground 3 years ago.
More...

why do you even have to ask? What is it you don't understand. Think the worst, and it's worse.

Spitzer front ran investigationfor his manager buddies. So, why do you think he stopped w/Madoff?
 
10yrs of fraud, and not one investigation after many complaints... geez louise, you get one complaint about a bucket shop on LI and the sec is investigating it like gangbusters, you get several complaints and this thing isnt touched? c'mon, inside job. the part i find the funniest (in a sad way) is all these correspondants and reporters acting surprised or shocked that he may have hid money away... lol, isnt that the point of a scam? to actually profit from it? c'mon, you think this guy really lost all that money?
 
We can, however, better understand how to reform the U.S. financial system by carefully examining this Ponzi scheme.”
--------------------------------

1) Crissakes they had a half a century to develope safegaurds since Ponzi has been dead.

2) What's to examine? It's elementary.

3) Below is a wiki comment re pension fund has the characteristics of a ponzi scheme, hmmmnnn, SS ring a bell. I suggest a little examination of the govt "ponzi r us".

4) I'm excited!!!!!! Obama - new President. And now Congress is going to end Ponzi schemes. Darth Vader meets Harry Potter. Life is good. lmao.


Although non-fraudulent in intent, a pension fund can share some of the characteristics of a Ponzi scheme in that, except during the final period of the fund's life-span, the outgoing cash used in any month to pay pensions is usually taken from the incoming contributions of the active members of the pension scheme. In a year of poor equity returns such as 2008, a pension fund can often perform worse for its members than a Ponzi scheme.
 
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