Wednesday, December 17, 2008

Another Example of Government Protection

NEWS ALERT
from The Wall Street Journal

Dec. 16, 2008


"SEC Chairman Christopher Cox said initial findings of an investigation into the commission's handling of the Bernard Madoff case are 'deeply troubling.' In a statement, Mr. Cox said the investigation has discovered that Mr. Madoff 'kept several sets of books and false documents, and provided false information involving his advisory activities to investors and to regulators.'

"Mr. Cox said the SEC had 'credible and specific allegations' going back to at least 1999 that were not aggressively pursued by the staff. The agency relied only on Mr. Madoff's voluntary production of statements and reports and never carried out subpoenas of other information, in what he described as "multiple failures.'

"He also said any SEC staff members who knew Mr. Madoff were recused from the current investigation."

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