Gravely Concerned

In yet another example of the ineffectiveness of regulatory oversight, SEC Chairman Christopher Cox admitted today that the SEC failed to act on numerous red flags regarding Benard Madoff's hedge fund turned Ponzi scheme.  With an estimate of $50 billion in losses, the fraud dwarfs those uncovered at Enron and Worldcom that ultimately led to the creation of the Sarbanes-Oxley Act.  Mr. Cox stated the following in today's Wall Street Journal.

"I am gravely concerned" by the agency's regulation of the firm, Mr. Cox said.  According to Mr. Cox, Mr. Madoff "kept several sets of books and false documents, and provided false information involving his advisory activities to investors and to regulators."

To be effective, regulatory oversight must be re-examined and restructured to provide consistent and comprehensive control.  Without it, trust and confidence will not return to our financial markets.