I think Matt Taibbi of Rolling Stone is the second greatest financial journalist of our generation after Michael Lewis. I did not see his latest piece, “Is the SEC Covering Up Wall Street Crimes?” on businessinsider so I decided to post it.
Against National Archive rules, the SEC has been destroying documents from MUI (investigations that did not result in prosecutions) that they should have been keeping for 25 years. This has the effect of whitewashing suspicious but legally unprovable activity. It also eliminates the possibility of investigators seeing a pattern.
I came away from the article with the realisation that the culture of the SEC has not changed even after the Madoff fraud and a financial crisis that almost brought the country to its knees. The current director of enforcement at the SEC, Robert Khuzami, was hostile to the whistleblower Darcy Flynn when he brought the improper destruction of documents to his attention. Khuzami also refused to cooperate with a recent inquiry from Senator Grassley about the infamous hedge fund SAC.
I am scared for investors. Read Taibbi’s article. Just not before bed or it will give you nightmares.
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