Once again the financial world is rocked by news of fraud, impropriety and deceit and once again the SEC have failed in their role as the police agency for the US markets. This time it's famed trader Bernard Madoff whose lengthy and simple Ponzi scheme has bilked investors large and small of around $50B. Apparently the SEC were tipped about Madoff's actions as early as 1999 but chose to ignore the information and subsequent questions from other investment professionals. Like Enron, Fannie/Freddie, Bear Stearns and a whole host of institutions it was supposed to regulate, the SEC has shown a complete dereliction of duty time and time again. If it wasn't for family memebers turning him in, Mr. Madoff would still be trading today.
This is an organization whose website proudly proclaims:
During his tenure at the SEC, Chairman Cox has made vigorous enforcement of the securities laws the agency's top priority, bringing ground breaking cases against a variety of market abuses including hedge fund insider trading, stock options backdating, fraud aimed at senior citizens, municipal securities fraud, and securities scams on the Internet.
Mr. Cox needs to step down immediataly and his organization disbanded and replaced with one that can actually do the job required. Mad Money's Jim Cramer has offered his services, perhaps we should take him up on it?