Sunday, December 21, 2008

Madoff Family Connections to Regulatory Bodies

WSJ's Washngton Wire details the many connections between various regulatory agencies and the Madoff family.

Bernie's sons, brother and niece were all over the place providng SEC, NASD, FINRA with advice on how to regulate markets to "protect investors".

Writes the wire:

Those relationships may have allowed Madoff’s company, Bernard L. Madoff Investment Securities, to attract investors and avoid serious scrutiny.
Ya think?

In truth most of the people around regualtory agencies are there to promote regulation that will benefit themselves. As I have said before, there are rules on the books of the SEC that probably as few as 5 people understand (and there is no one among the 5 from the SEC). Those five, however, are minting money by taking advantage of such rules.Those relationships may have allowed Madoff’s company, Bernard L. Madoff Investment Securities, to attract investors and avoid serious scrutiny.

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