Network News

X My Profile
View More Activity
2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

It's the SEC's Turn to Get Grilled on Capitol Hill

Re. Bernie Madoff: What did the SEC know and when did it know it?

That may be the tenor of the congressional hearing scheduled for Jan. 5, as the Hill takes its first whack at the Madoff scandal, in which the trusted investment fund manager confessed to running a $50 billion Ponzi scheme.

Critics have faulted the Securities and Exchange Commission for failing to detect a multibillion-dollar scam targeting the super-wealthy and celebrities (including Kevin Bacon!) -- despite warnings from outsiders -- even as the agency apparently is able to find and shut down $23 million Ponzi schemes targeting Haitian-Americans.

Rep. Paul Kanjorski (D-Pa.) said today that his Financial Services committee will turn a hard eye on the SEC.

"These proceedings will help us to discern whether or not the SEC 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," Kanjorksi said in a statement today.

Meanwhile, in news that may or may not be related, the SEC's top accountant in its enforcement branch is leaving the agency for a job in the private sector next month.

Susan Markel is taking a job in the corporate investigations practice of AlixPartners LLP, a turnaround consulting firm.

-- Frank Ahrens

By Frank Ahrens  |  December 30, 2008; 3:06 PM ET
Categories:  The Ticker  | Tags: Bernie Madoff, SEC  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Clock Ticks For Bernie Madoff
Next: Fed Will Begin Buying Mortgage-Backed Securities Next Month

No comments have been posted to this entry.

The comments to this entry are closed.

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company