Comments on: Markopolos vs. SEC: Red Flags All Over The Field http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/ Thu, 24 May 2012 17:29:00 +0000 hourly 1 http://wordpress.org/?v=3.0.4 By: Mercedes http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135898 Mercedes Fri, 06 Feb 2009 18:56:30 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135898 In a way, this scandal is unbelievable, but in another way it is typical of the anti-regulatory bent of both Federal and State governments for at least the last 10-15 years. There is this dirty little secret that bureacrats truly are nothing more than paper shufflers these days because their political overseers will not allow them to enforce statutes and regulations....in all areas of government. It is a major scandal and an outrage. One other thing, where does the deception and unconstitutional money funneling of the black budget come into play in this particular scandal and the financial breakdown overall? That is another outrage and scandal that no one is talking about. In a way, this scandal is unbelievable, but in another way it is typical of the anti-regulatory bent of both Federal and State governments for at least the last 10-15 years. There is this dirty little secret that bureacrats truly are nothing more than paper shufflers these days because their political overseers will not allow them to enforce statutes and regulations….in all areas of government. It is a major scandal and an outrage. One other thing, where does the deception and unconstitutional money funneling of the black budget come into play in this particular scandal and the financial breakdown overall? That is another outrage and scandal that no one is talking about.

]]> By: Gary McGowan http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135800 Gary McGowan Fri, 06 Feb 2009 17:17:32 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135800 You are welcome. I knew <em>you'd</em> be able to decipher the esoteric comment. It was pretty heavy going for me! You are welcome. I knew you’d be able to decipher the esoteric comment. It was pretty heavy going for me!

]]> By: trixta http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135698 trixta Fri, 06 Feb 2009 15:54:27 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135698 The SEC was too busy investigating and prosecuting Martha Stewart to bother with Madoff. The SEC was too busy investigating and prosecuting Martha Stewart to bother with Madoff.

]]> By: Sonic Ninja Kitty http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135694 Sonic Ninja Kitty Fri, 06 Feb 2009 15:52:43 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135694 Thank God for people like Markopolos, it gives me some faith. Our SEC obviously needs a total overhaul. Thanks for the story, LD, it's amazing. You are a real gem!! Thank God for people like Markopolos, it gives me some faith. Our SEC obviously needs a total overhaul.

Thanks for the story, LD, it’s amazing. You are a real gem!!

]]> By: LD http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135651 LD Fri, 06 Feb 2009 15:10:40 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135651 Gary, Thanks for these links. I do hope that for the total truth to be revealed that the powers that be FULLY investigate the nature of Bernie's brother's realtionships at FINRA. Doesn't seem too egregious to me. Gary,

Thanks for these links.

I do hope that for the total truth to be revealed that the powers that be FULLY investigate the nature of Bernie’s brother’s realtionships at FINRA.

Doesn’t seem too egregious to me.

]]> By: Patience http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135644 Patience Fri, 06 Feb 2009 15:00:21 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135644 Madoff's practices have been under suspicion since the early '90s, so the more recent oversight negligence is just a continuation of a normal pattern. I wonder if, since his clientele consisted of so many charities and socialites, that there wasn't pressure put to bear to lay off him? After all, until the financial collapse in the fall of 2008, he offered these clients [unreasonably] steady rates of return. This is not to say that there couldn't have been insider criminality involved as well, but with so much of his clientele consisting of [especially] NY elites, it's reasonable to assume that they could've influenced government policy. Madoff’s practices have been under suspicion since the early ’90s, so the more recent oversight negligence is just a continuation of a normal pattern.

I wonder if, since his clientele consisted of so many charities and socialites, that there wasn’t pressure put to bear to lay off him? After all, until the financial collapse in the fall of 2008, he offered these clients [unreasonably] steady rates of return. This is not to say that there couldn’t have been insider criminality involved as well, but with so much of his clientele consisting of [especially] NY elites, it’s reasonable to assume that they could’ve influenced government policy.

]]> By: Gary McGowan http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135643 Gary McGowan Fri, 06 Feb 2009 14:59:13 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135643 <strong>Schapiro: SEC testimony not satisfactory </strong> By Dan Jamieson February 5, 2009, 4:09 PM EST Securities and Exchange Commission Chairman Mary Schapiro has offered an apology of sorts for the testimony of SEC officials before a House subcommittee hearing yesterday that was looking at the SEC's role in the alleged Bernard Madoff fraud. <blockquote>Today's testimony before your subcommittee could not have been satisfactory,” Ms. Schapiro wrote Wednesday in a letter to Rep. Paul Kanjorski, D-Pa., the chairman, and Rep. Scott Garrett, R-N.J., the ranking member of the House subcommittee on capital markets. Ms. Schapiro sent the letter after a panel of top SEC officials refused to answer specific questions from panel members about the Madoff case, citing ongoing investigations. At one point during the hearing, SEC acting general counsel Andy Vollmer cited executive privilege and other privileges in declining to answer some questions. [...]</blockquote> more, including comments of varying value... http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090205/REG/902059960 This comment, although a bit esoteric, seems worthy of note: <blockquote> J Baz wrote: In the Madoff case FINRA was not the regulator to review the RIA that was the SEC's domain. Yeah FINRA/NASD had oversight of the BD but unless they would have had knowledge of the trade activity the RIA was claiming they wouldn't have had a clue there was something amiss. As for the SEC they dropped the ball all over the place. Madoff was able to pull this off because he had the auditor in his back pocket and used his BD arm as custodian. A lot of RIA's use outside custodians which if Madoff had been using would not have enabled him to pull off the scam. Another thing is his compliance officer and operations staff had to be in on this because no single person would have been able to pull this off by themself. As a CCO of a FINRA member I have come to respect Shapiro and her stewardship of FINRA/NASD. I wish her well in turning around the culture at the SEC. 2/5/2009 9:56 PM EST </blockquote> ...because he's replying to this (uninformed) accusation: <blockquote>don' get it. Mary runs FINRA which is charged with the responsibility to regulate Madoff. FINRA totally drops the ball and Mary gets promoted??? Am I missing something here?</blockquote> Schapiro: SEC testimony not satisfactory
By Dan Jamieson
February 5, 2009, 4:09 PM EST

Securities and Exchange Commission Chairman Mary Schapiro has offered an apology of sorts for the testimony of SEC officials before a House subcommittee hearing yesterday that was looking at the SEC’s role in the alleged Bernard Madoff fraud.

Today’s testimony before your subcommittee could not have been satisfactory,” Ms. Schapiro wrote Wednesday in a letter to Rep. Paul Kanjorski, D-Pa., the chairman, and Rep. Scott Garrett, R-N.J., the ranking member of the House subcommittee on capital markets.

Ms. Schapiro sent the letter after a panel of top SEC officials refused to answer specific questions from panel members about the Madoff case, citing ongoing investigations. At one point during the hearing, SEC acting general counsel Andy Vollmer cited executive privilege and other privileges in declining to answer some questions. [...]

more, including comments of varying value…
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090205/REG/902059960

This comment, although a bit esoteric, seems worthy of note:

J Baz wrote:
In the Madoff case FINRA was not the regulator to review the RIA that was the SEC’s domain. Yeah FINRA/NASD had oversight of the BD but unless they would have had knowledge of the trade activity the RIA was claiming they wouldn’t have had a clue there was something amiss. As for the SEC they dropped the ball all over the place. Madoff was able to pull this off because he had the auditor in his back pocket and used his BD arm as custodian. A lot of RIA’s use outside custodians which if Madoff had been using would not have enabled him to pull off the scam. Another thing is his compliance officer and operations staff had to be in on this because no single person would have been able to pull this off by themself. As a CCO of a FINRA member I have come to respect Shapiro and her stewardship of FINRA/NASD. I wish her well in turning around the culture at the SEC.
2/5/2009 9:56 PM EST

…because he’s replying to this (uninformed) accusation:

don’ get it. Mary runs FINRA which is charged with the responsibility to regulate Madoff. FINRA totally drops the ball and Mary gets promoted??? Am I missing something here?

]]> By: CG http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135623 CG Fri, 06 Feb 2009 14:30:10 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135623 No doubt about it, there was collusion that appears to be criminal, and unethical. It is mind-boggling how far reaching this scheme... and how long it was allowed to escalate... The lack of conscience of Madoff and co-conspirators blows me away. The worthless media is too simple-minded to go into in-depth reporting on Markopolos' testimony, perhaps calculated to help Obama, by not distracting Americans with this fraud, at a time when Obama will turn a trillion dollar debt with a stimulus package which is temporary. The good thing, I believe Markopolos caught the attention of Congress, thankfully. [side note: if Paris Hilton did something outrageous, it would get more attention in the media than the brilliant testimony of Markopolos.] All of it is So Shameful! If I've caught it correctly, both you, LD, and Markopolos are from Massachusetts... any chance you can ask him to join you for your radio program? It might also be interesting to hear what one of your guests (I can't remember his name, friend of LJ who discussed Madoff case on your show) has to say about the testimony of Markopolos. But then again, there is the showdown on the stimulus package... No doubt about it, there was collusion that appears to be criminal, and unethical. It is mind-boggling how far reaching this scheme… and how long it was allowed to escalate… The lack of conscience of Madoff and co-conspirators blows me away. The worthless media is too simple-minded to go into in-depth reporting on Markopolos’ testimony, perhaps calculated to help Obama, by not distracting Americans with this fraud, at a time when Obama will turn a trillion dollar debt with a stimulus package which is temporary. The good thing, I believe Markopolos caught the attention of Congress, thankfully. [side note: if Paris Hilton did something outrageous, it would get more attention in the media than the brilliant testimony of Markopolos.] All of it is So Shameful!

If I’ve caught it correctly, both you, LD, and Markopolos are from Massachusetts… any chance you can ask him to join you for your radio program? It might also be interesting to hear what one of your guests (I can’t remember his name, friend of LJ who discussed Madoff case on your show) has to say about the testimony of Markopolos. But then again, there is the showdown on the stimulus package…

]]> By: Gary McGowan http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135603 Gary McGowan Fri, 06 Feb 2009 14:01:52 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135603 <strong>Bush SEC Holdovers Cite Exec Privilege In Stonewalling Congress About Madoff Scandal</strong> by: David Sirota Wed Feb 04, 2009 at 17:16 <blockquote>"At a contentious Financial Services Committee hearing today about the failure of the Securities and Exchange Commission to prevent the Bernie Madoff scandal, the SEC's General Counsel cited executive privilege as reason that he and the SEC's enforcement branch were refusing to answer congressional inquiries. You can watch the video here . . ." (more story too)</blockquote> http://www.openleft.com/showDiary.do?diaryId=11366 Bush SEC Holdovers Cite Exec Privilege
In Stonewalling Congress About Madoff Scandal
by: David Sirota
Wed Feb 04, 2009 at 17:16

“At a contentious Financial Services Committee hearing today about the failure of the Securities and Exchange Commission to prevent the Bernie Madoff scandal, the SEC’s General Counsel cited executive privilege as reason that he and the SEC’s enforcement branch were refusing to answer congressional inquiries. You can watch the video here . . .” (more story too)

http://www.openleft.com/showDiary.do?diaryId=11366

]]> By: Sammie http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135600 Sammie Fri, 06 Feb 2009 13:53:29 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135600 I can't believe that so far no one is being held accountable. We have regulators and members of Congress on over sight committees that obviously weren't doing their jobs (and may actually be corrupt), yet they haven't been held accountable. There is no way the mortgage mess and ponzi schemes should have gotten so out of control. I can’t believe that so far no one is being held accountable. We have regulators and members of Congress on over sight committees that obviously weren’t doing their jobs (and may actually be corrupt), yet they haven’t been held accountable. There is no way the mortgage mess and ponzi schemes should have gotten so out of control.

]]> By: mountainaires http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135599 mountainaires Fri, 06 Feb 2009 13:52:23 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135599 A great encapsulation of the breathtaking failure by the SEC, LD. Why isn't Chris Cox up there on Capitol Hill being grilled? Why isn't Shapiro up there being grilled? Why the underlings? Why isn't this getting more coverage by the media? It's a complete mystery to me; this should be "page one, top of the fold, big and bold." I don't get it. Are the media not covering this out of deference to Obama's Shapiro pick? I wonder. If FINRA becomes a household word in connection to the Madoff Scandal, then Shapiro's name comes into the story, linked to Madoff. Are the media actually attempting to protect her from scrutiny, and by extension, Obama? Markopolous should be hired to run SEC if you ask me. Or he should be placed as second to Sharpiro--to keep an eye on her. ;-) Everyone seems to think Madoff couldn't possibly have done this alone...and I cannot believe this guy is still living in his home, instead of sitting in jail. A great encapsulation of the breathtaking failure by the SEC, LD. Why isn’t Chris Cox up there on Capitol Hill being grilled? Why isn’t Shapiro up there being grilled? Why the underlings?

Why isn’t this getting more coverage by the media? It’s a complete mystery to me; this should be “page one, top of the fold, big and bold.”

I don’t get it. Are the media not covering this out of deference to Obama’s Shapiro pick? I wonder. If FINRA becomes a household word in connection to the Madoff Scandal, then Shapiro’s name comes into the story, linked to Madoff. Are the media actually attempting to protect her from scrutiny, and by extension, Obama?

Markopolous should be hired to run SEC if you ask me. Or he should be placed as second to Sharpiro–to keep an eye on her. ;-)

Everyone seems to think Madoff couldn’t possibly have done this alone…and I cannot believe this guy is still living in his home, instead of sitting in jail.

]]> By: Judy L. NC http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135593 Judy L. NC Fri, 06 Feb 2009 13:32:59 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135593 I agree with Elliott---lazy, incompetent or paid off. Could NOT believe my ears to hear questioner say to SEC, "you couldn't find your rear end with both hands and the lights on!" They love to talk tough and then don't do anything about it. I agree with Elliott—lazy, incompetent or paid off. Could NOT believe my ears to hear questioner say to SEC, “you couldn’t find your rear end with both hands and the lights on!” They love to talk tough and then don’t do anything about it.

]]> By: Elliott http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135582 Elliott Fri, 06 Feb 2009 13:18:25 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135582 The "regulators" need to go down also. I'm not sure if it is laziness, incompetence or if they were being paid off. This is a culture of "I'll just stay out of it". Madoff was very well connected so apparently it was hands off for him. Congress needs to look at each step of attempts to get the SEC and other regulators off their butts. There is a high probability that SEC had been downsized by Bushies and rendered impotent with Chris Cox leading the FEMAizing of the agency. But NY state agencies appear to have let it ride also. The Republican strategy of ruining a government entity purposely then accusing what is left of failure is too familiar. Thieves do not like to be watched. The “regulators” need to go down also. I’m not sure if it is laziness, incompetence or if they were being paid off. This is a culture of “I’ll just stay out of it”. Madoff was very well connected so apparently it was hands off for him. Congress needs to look at each step of attempts to get the SEC and other regulators off their butts. There is a high probability that SEC had been downsized by Bushies and rendered impotent with Chris Cox leading the FEMAizing of the agency. But NY state agencies appear to have let it ride also. The Republican strategy of ruining a government entity purposely then accusing what is left of failure is too familiar. Thieves do not like to be watched.

]]> By: wodiej http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135577 wodiej Fri, 06 Feb 2009 13:02:54 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135577 This is another glaring example of corruption and greed going off a cliff with no regard to the consequences or who it harms. The SEC needs to be held responsible. And I don't mean a slap on the wrist after 2 years of hearings and millions of taxpayer dollars later. All they need to know is who is responsible for following up on what Harry discovered and informed them about. Then off to jail. Because of their derelect in duty that caused irreparable harm to many, the assets of all those responsible should be seized and put in an account for safekeeping and then distributed among those who got ripped off. For crying out loud, do people w money have stupid written on their forehead?? I am just wondering if they could have averted this. Were they being greedy or did they just trust this thief? I'm sorry, but it seems most of the financial chaos going on stems from greed, the banks, corporatins, congress, consumers.... This is another glaring example of corruption and greed going off a cliff with no regard to the consequences or who it harms. The SEC needs to be held responsible. And I don’t mean a slap on the wrist after 2 years of hearings and millions of taxpayer dollars later. All they need to know is who is responsible for following up on what Harry discovered and informed them about. Then off to jail. Because of their derelect in duty that caused irreparable harm to many, the assets of all those responsible should be seized and put in an account for safekeeping and then distributed among those who got ripped off.

For crying out loud, do people w money have stupid written on their forehead?? I am just wondering if they could have averted this. Were they being greedy or did they just trust this thief? I’m sorry, but it seems most of the financial chaos going on stems from greed, the banks, corporatins, congress, consumers….

]]> By: bert http://www.noquarterusa.net/blog/13429/markopolos-vs-sec-red-flags-all-over-the-field/#comment-1135576 bert Fri, 06 Feb 2009 13:02:49 +0000 http://www.noquarterusa.net/blog/?p=13429#comment-1135576 You have said it all clearly and concisely. There is nothing to add except the accountability factor. Someone, more likely from your account, many someone’s, should have to pay a price for this massive rip-off of the American people. Jail time is not enough. All involved should have to pay back money into the system. Tax bailouts at this point in time are like asking the family of a murder victim to pay the murderer’s bills for the rest of his life. You have said it all clearly and concisely. There is nothing to add except the accountability factor. Someone, more likely from your account, many someone’s, should have to pay a price for this massive rip-off of the American people. Jail time is not enough. All involved should have to pay back money into the system. Tax bailouts at this point in time are like asking the family of a murder victim to pay the murderer’s bills for the rest of his life.

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