"Mr. [Arthur] Levitt then states that broker-dealers can no longer be allowed to be audited by 'any CPA' or 'mom-and-pop auditor.' I would remind Mr Levitt that Enron, Fannie Mae and Freddie Mac were all audited by major CPA firms while they issued fraudulent financial statements. It takes one good auditor to discover fraud", Kevin Rosenberg letter to the WSJ, 10 January 2009.
"On the beach a few miles south of Palm Beach, I ran into a hedge-fund manager who was mystified that nobody caught on--not because of the steady returns, but because of the apparently low cost. 'Madoff didn't charge any fees!' he practically yelled, piercing the calm of the gentle waves. And nobody--from shoe shiners to CEOs of investment banks--on Wall Street does anything without collecting a fee. ... They didn't bother to ask or find out how Madoff racked up his reliable returns, and didn't demand statements audited by a reputable accounting firm", Daniel Gross at Newsweek, 12 January 2009.
Did MC ever live in the real world? "'[HM] has no basis to judge what we did or did not do in any investigation because we're not able--as we told him at the time--we were not able to give him updates as to what we were or were not doing with his information. And that is a strong commssion policy, that we do not disclose what is happening in a confidential non-public investigation. And that is for the benefit of everyone'." Meaghan Baby, will you suggest the SEC voluntarily give HM its files?
One SEC problem: it employs too many lawyers, the vast majority of whom are innumerate. So MC has experts. If you are so incompetent you don't know when to call them, what good are they, my 22 December 2007 post: http://skepticaltexascpa.blogspot.com/2007/12/us-injustice-system-at-work.html.