The SEC brought tremendous embarrassment on itself when it released a damning report on its own handling of the Madoff case (though of course, the real embarrassment was the handling itself, not the report).
But FINRA, an organisation with close ties to Madoff, may decide to just keep the report under lock and key, not letting it be seen by the outside world.
Bloomberg: The Financial Industry Regulatory Authority board may determine the report’s fate this week, according to the people, who declined to be identified because talks are private. A panel of the 21-member board led the review after Madoff confessed to operating a $65 billion Ponzi scheme and Stanford was accused of running a $7 billion fraud through a Caribbean bank.
Bowsher, the committee’s chairman, is adamant the document be released, according to one person. He didn’t return a phone call seeking comment.
Finra spokeswoman Nancy Condon said the board formed the committee to review the examination program “in light of the Madoff and Stanford cases.” A draft was shared with the board, which will decide whether to release it, she said yesterday. She declined to comment on whether any board members oppose making the document public.
Our guess is it will be released. Even if they decide not to release it, the blowback will be so intense that they’ll change their mind. The fact that it’s even being debated seems crazy.