Remember when McCain said the fundamentals of the U.S. economy were sound and hours later Lehman Bros. declared bankrptucy? This was preceded by the SEC's chairman making a similar blunder.
S.E.C. Image Suffers in a String of Setbacks
By STEPHEN LABATON
Published: December 15, 2008
NY Times
The latest black eye for the commission came when inspectors and agency lawyers missed a series of red flags at Bernard L. Madoff Investment Securities. If it had checked out the warnings, the commission might well have discovered years ago that the firm was concealing its losses by using billions of dollars from some investors to pay others.
The firm was the subject of several inquiries over the years, including one last year that was closed by the agency’s New York office after it received a referral of potentially significant problems from the Boston office.
Similarly, the agency’s chairman, Christopher Cox, assured investors nine months ago that all was well at Bear Stearns. It collapsed three days later.
Posts
No comments:
Post a Comment