”In the past, the SEC took Madoff's records at face value and did not do any digging to see if they were accurate. Their job was to dig but they failed to do their job. Failed regulatory oversight.
The SEC has been looking the other way for some time now. They do evaluations at face or surface value and do not dig very deep these days. This must change and should when the new administration gets underway.
There are so many areas in the equity markets that are lacking in proper oversight.”
I certainly agree with all your above sentiments TO.
It’s certainly good to read we’re on the same page, especially since you’re closer to events in the US than I am and are more likely to have greater insight to the facts.
The one big question I have is “Why ?”
Why have the past financial debacles such as Lehman, Madoff, Sub-primes, Goldman Sachs, etc.. etc.. been able to occur when there are established Regulatory bodies, and others, in place ?
These institutions have the main task and responsibility to monitor what’s going on in the world of investment, banking, etc..
They are supposed to be equipped and staffed with experienced, knowledgeable, well educated individuals who are there to ensure that investor’s interests, amongst other things, are protected.
They are supposed to know enough such that they can spot a potential fraudulent or suspect scenario arising ... and nip it in the bud.
They are supposed to scrutinize and interrogate newly created financial “instruments” and monitor their affects on the economy and in the Market place.
And yet .... as you said, “they failed to do their job”.
Once again, I ask “Why ?’
If you know what you’re doing then it isn’t rocket science.
For one thing, you don’t lend money to people who obviously do not have the wherewithal to at least pay back the interest, let alone the principal.
Without wanting to get into the realm of things “conspiratorial”, it just seems to me that so much, that should have been obvious to the trained and “well-paid”, was allowed to carry on without much undue hindrance.
From Federal Reserve Chairmen to company CEO’s, all of this appeared to pass over their heads. And yet, they are supposed to be the “Experts”. Isn’t that why they get paid the “big bucks” ?!!
After all, someone of the calibre of Warren Buffett referred to certain of those newly created financial instruments as "financial weapons of mass destruction".
If he could see it, then why didn't many of those in authority see it as well ?!!
No doubt many in high places were making a lot of hay while the sun was shining.
Sorry to say, but IM (humble)O, it stinks to high heaven.
Maybe, in time, we'll be presented with facts and figures that may cast a very different light as to the real causes and reasons behind these past financial aberrations. |
