House panel rips SEC on lapses with Bernard Madoff

/Home/Madoff and the US Regulators -SEC and FINRA/SEC and Madoff Fraud Investigations/Why SEC missed on Madoff

Lawmakers excoriated federal regulators on Monday for failing to pursue "red flags" signaling that Bernard Madoff's storied investment business was an elaborate Ponzi scheme, and some officials promised more investigation and regulation in coming months.

Rep. Paul Kanjorski (D-Pa.), chairman of the House subcommittee on capital markets, warned that Congress intends to scour the record of the Securities and Exchange Commission and impose new rules to prevent a similar lapse in the future.

"Clearly, our regulator system has failed miserably. And we must rebuild it now," Kanjorski said.