SEC refuses to allow Bear Stearns Investigation

Discussion in 'Economics' started by libertad, Apr 23, 2008.

  1. I told you our guys got in front of the SEC IG at their request. I was priveliged to provide ten years worth of stuff to them, showing the SEC ignoring the obvious.

    This, as I am told, is the end of the SEC as you and I know it.

    To regret such an event is tantamount to a German standing in 1945 Dresden lamenting the loss of Hitler.
  2. People have asked Congress for an investigation. The SEC has refused. The situation we have here is basically Congress using their 5th amendment privledge. Oh, you didn't know they had one, well they don't but here's the plan.

    If Congress investigates BSC via the SEC Congress may incriminate thmselves. The SEC refuses citing confidentiality, no votes are lost, Nor reps are damaged. Everyone understands confidentiality. If the mission of the SEC is to ensure/maintain "confidence" in the markets, can't have just anybody snooping.

    Three cheers for the first Congressman who suggests a class action lawsuit via a securites law firm as recourse. This'll drag on for years or at least until the new shows on TV start in September, when the credit crisis will end. (sarcasm)
  3. I am absolutely disgusted but not surprised one bit.
  4. Make you wonder, would Drexel, Milken, Boesky and etc be prosecuted if the case was being handled today???
  5. Interesting. Maybe the new group studied the mistakes of the former, and avoided some of the pitfalls. Maybe, like Schumer told the hedgies, pony up boys. Pay on the scale you earn. That is a distinct possibility.

    If you are a real and honest trader, imagine how much has been stolen from you over the years. The big money funds that are honest are starting to raise hell. A while back I posted that Bethany McLean is believed to be writing a story about money managers; the managers are saying that she is going to paint them in a bad light hoping to force redemptions and making them sell hard to borrow stocks into the market. The latest Deepcapture is about this wonderful person. You might want to check it out. Obviously, this is 'excrement hits the wind oscillator time." Wht the hell. Only been waiting ten years for some justice.
  6. Good question. Perhaps there are parallels (ie. junk bonds=mbs) but I think currently there are global implications that might make the U.S sales technique/products look bad whereas Drexel these guys were basicially crapping where we eat and sleep.

    check out the first few paragraphs. He's got discovery vs. The Prime Brokers. You have to think about this very critically. Those of you in the business know why they protect these records, and will fight to the death to keep them private. They lost. The implications are earthshattering to the hedgefund industry, and Wall St. in general.

    If you look around at the landscape, it has got to change, and change rapidly, or we have nothing. Any one see the article on Level 3 assets, "the next disaster'???
  8. Senator Tester of Montana has asked for the SEC to look into weather there was manipulative the trading involved in Bear Stearns short terms.


    I know, it's just me. I just have a hard time getting a handle on a Senator from Montana asking about Wall Street. It makes me think of Schumer asking about regulating prairie dogs.
  9. If prarie dogs were burrowing in Central Park, he'd have every right, wouldn't he?
    #10     Apr 23, 2008