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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: basserdan who wrote (4199)	2/4/2009 12:43:07 PM
From: rrufff	5 Recommendations Respond to of 5034

Markopolos Blasts SEC for 'Financial Illiteracy' FEBRUARY 4, 2009 By MICHAEL R. CRITTENDEN online.wsj.com WASHINGTON -- Fraud investigator Harry Markopolos blamed the Securities and Exchange Commission's "financial illiteracy" for failing to heed his warnings about money manager Bernard Madoff. Mr. Markopolos had warned the SEC for nearly a decade that Mr. Madoff was operating a Ponzi scheme. Mr. Markopolos is set to testify before a House committee Wednesday, and 311 pages of his written testimony became public Tuesday evening. "There was an abject failure by the regulatory agencies we entrust as our watchdog," Mr. Markopolos said in remarks prepared for the meeting. Mr. Markopolos's two previous Capitol Hill appearances were canceled at the last minute, and interest was high in his perspective on Mr. Madoff's alleged scheme, which could be one of the largest Wall Street swindles. In the documents, Mr. Markopolos described his efforts like a military intelligence operation. He said he and his team of investigators collected "intelligence reports" from field operatives and developed networks of contacts to provide information on Mr. Madoff's operation and the feeder funds that brought investors to the Madoff money-management business. Mr. Markopolos had harsh words for the SEC. Officials asked few questions and made little effort to understand the derivative instruments Mr. Madoff said he was using, according to Mr. Markopolos. His experience blowing the whistle to the SEC led him to conclude "that the SEC securities' lawyers if only through their ineptitude and financial illiteracy colluded to maintain large frauds such as the one to which Madoff later confessed." Mr. Markopolos acknowledged that his team didn't go through official channels beyond the SEC to expose their suspicions. He said he didn't think the Federal Bureau of Investigation would take him seriously because of the SEC's decision not to pursue the case. His group didn't contact the Financial Industry Regulatory Authority because of the Madoff family's connections to Finra. Mr. Markopolos said he and his team were worried for their safety because of Mr. Madoff's position as a powerful Street investor. This led them to submit some documents anonymously. Write to Michael R. Crittenden at michael.crittenden@dowjones.com online.wsj.com

To: basserdan who wrote (4199)	2/4/2009 12:45:31 PM
From: rrufff	Respond to of 5034

One of the consequences, not discussed, is that all of us taxpayers will take a huge hit as the multi-millionaire victims file for Madoff refunds. Just we need is another budget buster in this environment.

To: basserdan who wrote (4199)	2/4/2009 2:55:02 PM
From: dvdw©	Read Replies (1) \| Respond to of 5034

Bottom Line post the hearings with respect to the sec's part; Corollary #1 All systems are only as good as their sensory Organs. A System is no Better than its sensory organs Corollary #2 To those within a system, outside reality tends to pale and disappear; sum of testimony= RO/RS=CF this agency is a disgrace, an embarrassment of systemic largesse and inertia. all foretold....between the parted pages we were breath, in loves odd fevered iron, like a striped pair of pants. youtube.com