BSR Insight | U.S. Government Admits Fault in Madoff Investigation
Following an investigation into why the U.S. Securities and Exchange Commission (SEC) failed to detect the Bernard Madoff Ponzi scheme that stripped investors of nearly US$65 billion, SEC Chairwoman Mary Schapiro expressed her regret in a public statement, which also outlined how the commission will reform the way it regulates markets and protects investors.
"We have streamlined our enforcement procedures and are putting more experienced staff on the frontlines. We also have bolstered our inspection program, started to revamp the way we handle hundreds of thousands of tips received annually, begun to hire new skill sets, increased internal training, and sought more resources to keep pace with financial fraudsters …
In addition, we have proposed new industry rules that will better protect clients of investment advisors by mandating independent reviews … And we have sought legislation to enable us to compensate whistleblowers for providing substantial evidence of wrongdoing."
—Mary Schapiro, SEC Chairwoman (September 2, 2009)
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