Sunday, January 11, 2009
Madoff Fraud: More Than One Pair of Hands?
$50 billion is a lot of money, and while many "feeder" funds made this number possible, the thought that this fraud took more than one pair of hands to be pulled off only seems a very reasonable assumption for me to make. That the Securities & Exchange Commission (SEC) was asleep at the switch is an understatement. But, what we all must realize is that the SEC for many years has been influenced by a Congress and Presidents that sought to reduce oversight and permit more investors to become marks of the securities industry. The heavy hitters and large political contributions that come to the politicians from Wall Street, the brokerage and money management industry, are meant to ease the way and make it possible for marks to be shot like fish in a barrel. The same politicians that now act so upset by the Madoff fraud are many of the same politicians that did the securities industry bidding in the halls of congress. How did this fraud get over looked for so long without the help of "friends" on the inside? It is certainly time for all Americans to ask where was the oversight, regulations and enforcement and bring pressure on their representatives to rebuild and correct the weaknesses of the SEC. Finally, even the wealthy got hurt. Now the wealthy investors can know what smaller investors have faced and have had to deal with for many years. This time the big investor got hurt. Perhaps now we will see the proper actions taken to protect investors from the future Bernard Madoffs of the world.