Mary Schapiro picked to continue SEC's tacit reign of fraud, she "missed" Bayou fraud

Discussion in 'Wall St. News' started by wilburbear, Dec 19, 2008.

  1. A popular financial blog reports:

    Schapiro has troubled these pixels but once, when we reported that in 2003, during a period when she was opining vociferously on hedge fund-related broker-dealer disclosures and the adequacy thereof, her valiant sleuths swept through the offices of Bayou Securities LLC in Scamford, Conn.

    There, they found $8500 worth of allowing “two individuals to execute transactions...without first obtaining registration as equity traders…” and failing “to update written supervisory procedures reasonably designed to achieve compliance with said regulations…” The missing however many hundreds of millions it was by then quite escaped their attention as, boxes all checked and wrist-taps to come, the sleuths boarded the train back to Boston.

    Nobody else has spent so long at such high levels of the long captured US securities regulation complex. She has been a big part of building the regulatory problem for two decades; Stockholm Syndrome means she is unfit to be part of the solution.
  2. Cutten


    Rofl. If that's true she is dead in the water.

    Then again, if you pay janitor-level salaries, you can't expect to get competent individuals taking up the post.
  3. ipatent


    Low salaries means competence issues, and it also means they are more susceptible to corruption.

    Put it all on Internet and let the bloggers do the regulating.