{"id":4700,"date":"2009-09-03T10:29:57","date_gmt":"2009-09-03T08:29:57","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=4700"},"modified":"2009-09-03T10:29:57","modified_gmt":"2009-09-03T08:29:57","slug":"sec-staff-failed-over-madoff","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2009\/09\/03\/sec-staff-failed-over-madoff\/","title":{"rendered":"SEC staff failed over Madoff"},"content":{"rendered":"<p><a href=\"http:\/\/www.ft.com\/cms\/s\/0\/823958ba-97fa-11de-8d3d-00144feabdc0.html\">FT.com \/ Companies \/ Financial Services - SEC staff failed over Madoff<\/a>.<\/p>\n<blockquote><p>The US Securities and Exchange Commission missed many chances to expose<a class=\"bodystrong\" title=\"Financial Times - In depth: Madoff scandal\" href=\"http:\/\/www.ft.com\/madoff\">Bernard Madoff<\/a>&rsquo;s giant &ldquo;Ponzi&rdquo; scheme because the staff either did not know what to do or failed to follow up on detailed complaints, the agency&rsquo;s internal watchdog has concluded.<\/p>\n<p>In spite of eight credible complaints over the years, including one as recently as March 2008, &ldquo;a thorough and competent investigation or examination was never performed,&rdquo; said a summary of the findings, released on Wedesday. The SEC &ldquo;never took the necessary, but basic, steps to determine if Madoff was operating a Ponzi scheme.&rdquo;<\/p><\/blockquote>\n<p>I am not surprised. The efficient market hypothesis said pricing was always right. regulatiors assumed the market delivered what investors wanted. The assumption that prices could be fixed was scorned upon.<\/p>\n<p>Regulation failed here, but it did so because it assumed the market is always right.<\/p>\n<p>The answer is simple: change the assumption. Turner proposed that. Look what the City said.<\/p>\n<p>Which is why he's right and they're wrong.<\/p>\n<p>Much tougher regualtion is the  answer. And regulators must assume those they regualte are crooks. Why would they need regualtuion if they weren't?<\/p>\n<p>Which is also why self regulation can never work.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FT.com \/ Companies \/ Financial Services &#8211; SEC staff failed over Madoff. The US Securities and Exchange Commission missed many chances to exposeBernard Madoff&rsquo;s giant<br \/><a class=\"moretag\" href=\"https:\/\/www.taxresearch.org.uk\/Blog\/2009\/09\/03\/sec-staff-failed-over-madoff\/\"><em> Read the full article&#8230;<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,65],"tags":[],"class_list":["post-4700","post","type-post","status-publish","format-standard","hentry","category-corruption","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/4700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=4700"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/4700\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=4700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=4700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=4700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}