Lax Oversight At Securities & Exchange

Discussion in 'Stock Market' started by Orange_Juice, Dec 25, 2008.

  1. Orange_Juice
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    Orange_Juice Senior Member

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    No wonder we are having so many problems on Wall Street, the wolves were in charge of the hen house. The free market can regulate itself? :cuckoo:

    http://www.nytimes.com/2008/12/25/business/25fraud.html?_r=1&th&emc=th

    WASHINGTON — Federal officials are bringing far fewer prosecutions as a result of fraudulent stock schemes than they did eight years ago, according to new data, raising further questions about whether the Bush administration has been too lax in policing Wall Street.

    Legal and financial experts say that a loosening of enforcement measures, cutbacks in staffing at the Securities and Exchange Commission, and a shift in resources toward terrorism at the F.B.I. have combined to make the federal government something of a paper tiger in investigating securities crimes.

    At a time when the financial news is being dominated by the $50 billion Ponzi scheme that Bernard L. Madoff is accused of running, federal officials are on pace this year to bring the fewest prosecutions for securities fraud since at least 1991, according to the data, compiled by a Syracuse University research group using Justice Department figures.
     
  2. Chris
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    Chris Gold Member

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    The SEC was warned numerous times about Madoff and did nothing.
     
  3. editec
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    editec Mr. Forgot-it-All

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    During the REAGAN administration the (then) recently understafffed actually audited his books and found no problems.

    What a surprise.
     
  4. mash107
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    mash107 Active Member

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    Since when is the free market free when there's an SEC giving false hope to everyone?
     
  5. KittenKoder
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    KittenKoder Senior Member

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    The free market isn't a bad idea, the problem is those who regulate the market now and have been for awhile. You think these 'bailouts' are all the government has done to trump up some corporations?
     
  6. editec
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    editec Mr. Forgot-it-All

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    No, that's not entirely true according to the reports I read.

    source

     
  7. Paulie
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    Paulie Platinum Member

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    Have you seen who the new SEC chairperson is going to be?

    Looks like wolves will still be guarding the hen house.

    Matter of fact, when HAVEN'T wolves guarded our various hen houses?
     

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