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Old 10-11-2009, 09:44 AM
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rickoff rickoff is offline
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What role does the SEC play in the American Ruling Class?

The Securities and Exchange Commission was created by Congress during the Great Depression. The idea was to create a watchdog agency that would keep an eye on Wall Street brokerages and stock exchanges, and hopefully end the kind of abuses that triggered the market crash of 1929. The SEC was given the power to license and regulate stock exchanges, the companies whose securities traded on them, and the brokers and dealers who conducted the trading. The enforcement authority given by Congress allows the SEC to bring civil enforcement actions against individuals or companies who have allegedly committed accounting fraud, provided false information, or engaged in insider trading or other violations of the security law. Sounds like a good idea, right? But wait a minute - why is it that the SEC apparently took no action to investigate or charge Deutsche Bank for its role in insider trading related to pre-911 American Airlines put options? (see post #1 for further details about that scandal)

More recently, the SEC was criticized for ignoring 9 years of requests to investigate Bernie Madoff. As you may remember, Madoff was finally convicted in March of this year for operating a Ponzi scheme Ponzi scheme - Wikipedia, the free encyclopedia that bilked investors out of more than 50 Billion dollars. This is said to be the largest financial fraud ever committed by a single person. Madoff had been chairman of Madoff Investment Securities, a Wall Street firm, and had also been chairman of the NASDAQ stock exchange. The SEC had reportedly conducted several investigations since 1992 regarding Madoff, but no charges were ever filed. Harry Markopolos testified before the House Financial Services Subcommittee in March of this year, saying that he had presented evidence, regarding Madoff's fraudulent activities, to SEC over a 9 year period, but that the SEC failed to take any action. See the Markopolous testimony here: YouTube - Markopolos: I gift wrapped and delivered the largest Ponzi scheme in history to the SEC

When one realizes that the SEC is run either directly by the American Ruling Class, or by puppets of the Ruling Class, such gross neglect and dereliction of duty becomes understandable.
YouTube - SEC corruption is limitless : Markopolos congress testimony on Madoff fraud

The SEC is headed by five commissioners, each of whom is a lawyer. Nearly all started their careers as corporate lawyers, defending and advising corporations on legal matters. The current chairperson of the SEC is Mary Schapiro, who assumed that position on January 22, 2009 under president Obama. In 2009, under the direction of Schapiro, the SEC attempted to settle a case with Bank of America regarding the disclosure of bonuses paid to Merrill Lynch executives just before their take over by Bank of America. U.S. District Judge Jed Rakoff threw out the proposed $33 million dollar settlement saying it "does not comport with the most elementary notions of justice and morality". Schapiro is reportedly considering early retirement in the wake of the scandal.

The scandals never end, do they? And they won't end as long as the American Ruling Class Wall Street elite, big money bankers, and corporate lawyers are placed in key government positions.

Rick
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Last edited by rickoff; 10-12-2009 at 08:26 AM. Reason: sp
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