SEC Hit With Data Destruction Complaint

DMandPenfold writes "The Securities and Exchange Commission (SEC), the US financial regulator, has been accused of destroying thousands of data files on high profile inquiries including an early-stage investigation into convicted Ponzi scheme fraudster Bernard Madoff. The allegations, raised by former SEC employee Darcy Flynn, have prompted the US Senate Judiciary Committee to write to SEC chairwoman Mary Schapiro to demand an immediate explanation. The SEC exists to set a tough example on corporate governance, and it fines banks heavily for both lax practice and deliberate malpractice. Questions over any involvement it may have in sensitive document destruction are not likely to sit comfortably with some in the industry. The SEC insists it has kept records in accordance with the law on its computer system."

Comments

Re:Anyone surprised?

[jhoegl]

About as surprised as the agency that was voted for by congress and given funds by congress as a response to the loan practices that caused the housing bubble to collapse in 2008, has no direction or head, and is as powerless as ever.

You voted for republicans? You got your wish. Fuck you for buying our stuff, too bad if it has poison in it, affects your health long term, or we are dumping in your favorite river. Fuck you if what we say is different from what we do. Fuck you, because buyer beware is the Republican belief.

http://www.cpsc.gov/
http://www.consumerfinance.gov/
http://www.ftc.gov/bcp/
None of which do shit because the laws are such that they are terrible.

Re:Anyone surprised?

[Grishnakh]

In case you haven't noticed, nothing different was done when Democrats had control of Congress between 2007 and 2010, and the whole time a Democrat has been in the White House (2009-now).

Remember, all these Federal agencies are part of the Executive Branch, and as such, are run by Obama.

Voting for Democrats won't get you different results, only different excuses ("the mean Republicans made us do it!!"). Heck, Obama is turning out to be a better Republican than Bush ever was. At least with Bush in charge, 6-year-old children didn't have to worry about being molested at the airport.

Re: US Ponzi

[cayenne8]

Well, someone had to get the attention of the Executive branch...and the public. Obama is about to spend us into oblivion. He's run up more debt in less than 3 years that GW Bush did in his whole 8 years...

Could it have been handled better? Sure...but it did at least get them started talking about some serious reform we need. I dunno if it will actually happen, but at least it is on top of the conversation stack at this point.

And at the very least..even if they hadn't passed the ceiling raise (which I had no doubt they would at the last minute)...the US would still have paid its debts...we'd just have had to emergency cut some funding to programs, which might have been tough on some, but we'd have survived ok.