The Madoff Scandal: Where was the SEC?
Regular readers of “A Dash” know that we are generally more sympathetic to government actors than the investment punditry. We think this stems from more direct experience with those in government and our disciplined effort to look at a problem from all perspectives. Despite this perspective, there is one institution that gets a consistently low grade: The SEC. A few days ago we suggested that investors monitor potential changes at the SEC. We continue to believe that this would be important to the long-term health of the market. If the new leadership were to suspend mark-to-market accounting rules pending clarification, it could even have a short-term effect. Likely Changes at the SEC Here is what we wrote earlier today on RealMoney: The Madoff scandal is yet another black mark for the SEC and Chairman Christopher Cox. In past comments I have noted that his official term of office extends until June of 2010, although Obama could appoint a new chairperson. In fact, several top SEC staff
