The SEC is in disarray, an agency source tells TPMMuckraker, following its horrible handling of the Madoff case.
The source said that one associate director in the enforcement division had in recent days ordered junior staff to review every case that’s been closed over the last few years, to ensure that violations weren’t missed — as they appear to have been in the 2006 investigation of Madoff. “There’s a real paranoia around here,” the source added.
In other words, any firm that failed to even dot an i on one its SEC filing can probably expect some type of call over the coming months. No doubt longtime SEC officials will face some hard congressional grilling, and we doubt that bustin Mark Cuban and that Playboy Bunny will be enough of a sacrifice.