Kanjorski Wants Update on SEC Probe of Madoff Failure
Kanjorski Wants Update on SEC Probe of Madoff Failure (Update1)
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By Jesse Westbrook
June 15 (Bloomberg) -- U.S. Representative Paul Kanjorski said the Securities and Exchange Commission’s in-house investigator should give Congress an update on his probe into why the agency missed Bernard Madoff’s $65 billion Ponzi scheme.
Kanjorski, chairman of the House Financial Services capital markets subcommittee, sent SEC Inspector General H. David Kotz a letter today telling him “the time has come for you to act.†Kotz, in January testimony before Kanjorski’s panel, said he hoped to produce some findings in “a matter of months†and that some results may be released on a rolling basis.
“Six months have now passed since you began your investigations,†Kanjorski wrote in his letter. “To the best of my knowledge, the only information that your office has made public†is a one-page overview that didn’t include any findings, the Pennsylvania Democrat said.
Congress, in response to a global economic crisis that has cost financial companies $1.47 trillion, is poised to initiate the biggest overhaul of regulation since the Great Depression. Lawmakers may debate whether the SEC’s Madoff failure means that the agency needs new powers or that some of its authority should go to other regulators.
“I have sought to use the Madoff fraud as a case study for determining how to improve oversight†and “investor protection in our securities markets,†Kanjorski said. He wants Kotz to respond by June 30 and provide a list of legislative proposals resulting from his findings.
‘Comprehensive’ Report
Kotz, in a letter to Kanjorski today, said he plans to issue a “comprehensive investigative report†on why the SEC missed Madoff no later than Aug. 31. Kotz said he will release two additional reports with recommendations on how to improve the SEC’s investigation and examination units.
“Let me assure you that we have been working as quickly as possible,†he wrote.
In a report released this month, Kotz said his staff had “substantially reviewed†more than 1.3 million e-mails as of March 31. Kotz said he had also ordered the SEC to turn over communications from at least 27 agency employees who were involved with examinations and inspections of Madoff’s investment and securities firm.
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net.
Last Updated: June 15, 2009 18:00 EDT
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June 15 (Bloomberg) -- U.S. Representative Paul Kanjorski said the Securities and Exchange Commission’s in-house investigator should give Congress an update on his probe into why the agency missed Bernard Madoff’s $65 billion Ponzi scheme.
Kanjorski, chairman of the House Financial Services capital markets subcommittee, sent SEC Inspector General H. David Kotz a letter today telling him “the time has come for you to act.†Kotz, in January testimony before Kanjorski’s panel, said he hoped to produce some findings in “a matter of months†and that some results may be released on a rolling basis.
“Six months have now passed since you began your investigations,†Kanjorski wrote in his letter. “To the best of my knowledge, the only information that your office has made public†is a one-page overview that didn’t include any findings, the Pennsylvania Democrat said.
Congress, in response to a global economic crisis that has cost financial companies $1.47 trillion, is poised to initiate the biggest overhaul of regulation since the Great Depression. Lawmakers may debate whether the SEC’s Madoff failure means that the agency needs new powers or that some of its authority should go to other regulators.
“I have sought to use the Madoff fraud as a case study for determining how to improve oversight†and “investor protection in our securities markets,†Kanjorski said. He wants Kotz to respond by June 30 and provide a list of legislative proposals resulting from his findings.
‘Comprehensive’ Report
Kotz, in a letter to Kanjorski today, said he plans to issue a “comprehensive investigative report†on why the SEC missed Madoff no later than Aug. 31. Kotz said he will release two additional reports with recommendations on how to improve the SEC’s investigation and examination units.
“Let me assure you that we have been working as quickly as possible,†he wrote.
In a report released this month, Kotz said his staff had “substantially reviewed†more than 1.3 million e-mails as of March 31. Kotz said he had also ordered the SEC to turn over communications from at least 27 agency employees who were involved with examinations and inspections of Madoff’s investment and securities firm.
To contact the reporter on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net.
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