How cool is that? It’s like you can do anything you want and you call the police to stop investigating you. That’s how cool it is.
During the hearing, Congressman Lynch said that current and former SEC employees complained to him about the existence of a “hotline” used by Wall Street firms to call directly to top SEC officials to “stop an investigation or slow it down.”
Washington, DC – In a hearing which exposed failures by the government’s financial police, Congressman Stephen Lynch (D-Massachusetts) highlighted the existence of a “hotline,” which he said could be used by Wall Street firms to call off government inspectors. The existence of a “hotline” has been confirmed by the Securities and Exchange Commission (SEC), though its purpose has been disputed.
The SEC – the federal agency tasked with policing the financial industry – has come under heavy criticism for incompetence and negligence in its role as the regulator of the giant Wall Street firms, the collapse of which has already cost taxpayers billions of dollars and continues to threaten the world economy. The most prominent example of SEC failure is the decades-long $50 billion Ponzi scheme – likely the largest financial fraud in history – orchestrated by Bernard Madoff. The fraud was identified by money manager and private investigator Harry Markopolos, the star witness at the February 4 hearing before the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises.