Monday, May 11, 2009

SEC Shuffles Titanic Deck Chairs

"The [SEC], hoping for a better shot at catching the next big fraud, is working on plans to set up teams of specialists who focus on specific kinds of wrongdoing. ... '"Specialization" is a fancy word for being as smart as we can about how we do our job,' said [Robert] Khuzami. 'By better understanding products, markets and transactions ... we can better identify trends and patterns.' ... Inside the SEC, the overhaul is meeting with some misgivings among staff who fear a specialized system would be unruly to manage and pigeonhole lawyers into narrow fields within securities law. Others are excited about the changes", Kara Scannell at the WSJ, 29 April 2009.

I do not expect this "Titanic deck chair shuffle" to make the SEC any more effective at finding fraud. It evokes memories of SARBOX.


Anonymous said...

"understanding products, markets and transactions ... we can better identify trends and patterns."

That's good... except that Wall Street is endlessly inventive and they will have to run pretty fast to keep up.

Shoot for transparency... it's the dark corners that hides fraud.

edgar said...

SEC (can't muster any emotion, sorry, tapped out)

darkcloud said...

SC -

Two words: "Undercover Investor".

What do you think?

Independent Accountant said...

I don't understand your comment.

darkcloud said...

I agree: the SEC in its current form is useless.

By the time fraud is detected, it is too late. My thinking is that to catch it before it goes too far, someone might have to be inside among the fraud parties, working undercover, so to speak.

Sorry - my tongue-in-cheek humor easily get's lost in written word.

Anonymous said...

"Undercover investor" great idea!

My church denomination has "mystery worshiper" who attends and writes a public critique of the service.

Why not? This could be done by foundations as a public service too.

Jr Accountant said...

How's the $32 million office rearrange going over at the SEC? Do we have an IFRS roadmap yet? Why in the hell aren't they investigating what happened to Dendreon a few weeks back?

What are they smoking?



darkcloud said...

Anonymous @ comment 6:

Thanks for your comment. My humor is pretty out there (though I've received high praise for it) and if I'm lucky, is my first response. Glad you enjoyed it.

Mystery worshiper? I like it, and will pass it on.