Friday, October 23, 2009


"An internal review by the nation's largest independent securities regulator found that its staff members had missed numerous red flags that would have uncovered frauds run by Bernard L. Madoff and the Texas billionaire R. Allen Stanford. The report to the group, the Financial Industry Regulatory Authority, was the latest indication that government and private regulators did not investigate tips that might have unconvered suspicious activities by both men before tens of thousands of investors lost billions of dollars. ... According to the report, Finra's predecessor, the NASD, did not act from 2003 to 2005 on 'credible information from at least five different sources claiming that the Stanford CD's were a potential fraud.' ... The Finra report noted that from 1999 to 2003, Finra's office in Dallas was led by Bernard Young, who three years later was hired as managing director of compliance at the Stanford Financial Group, Mr. Stanford's company", Clifford Krauss at the NYT, 3 October 2009, link:

Give it up. Under current incentives, regulation is hopeless.


Anonymous said...

It's pretty lame how the regulators ignored the substantive allegations that were brought to them,

The most astounding happened this year when the Moody's compliance guy contacted the SEC about Moody's failure to follow the law.

Hello --- it's the "internal compliance" guy calling... I think the SEC didn't return the call till the guy was going to testify to Congress.

Give it up. Under current incentives, regulation is hopeless.

Yup... time for Wall Street BOUNTY HUNTING.

Jr Deputy Accountant said...

Like Mulder waiting for the UFOs, I STILL BELIEVE.

Regulation is out there, Pop, all you gotta do is believe.

What a bunch of useless morons. Oh well, at least they aren't *hurting* anything, right? Oh wait..... damn!

Anonymous said...

Fair is foul and foul is foul.

Anonymous said...

How would a cpa explain to a layman the tens of billions of assets shown on the Texas CAFR when the gov claims there is a deficit?