18 August 2011

Matt Taibbi - Is the SEC Covering Up Wall Street Crimes?

Today's article is from Rolling Stone.

The always excellent Matt Taibbi gives us an excellent article on some of the ways that the SEC is not just failing in its regulatory duties but actually working with the corporations it's supposed to be monitoring.

In at least one case, according to Flynn, investigators at the SEC found their desire to bring a case against an influential bank thwarted by senior officials in the enforcement division – whose director turned around and accepted a lucrative job from the very same bank they had been prevented from investigating. In another case, the agency farmed out its inquiry to a private law firm – one hired by the company under investigation. The outside firm, unsurprisingly, concluded that no further investigation of its client was necessary. To complete the bureaucratic laundering process, Flynn says, the SEC dropped the case and destroyed the files.

Yup. Worth reading.

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