SEC staffers watched porn as economy crashed

Discussion in 'Wall St. News' started by hermit, Apr 23, 2010.

  1. Senior staffers at the Securities and Exchange Commission spent hours surfing pornographic websites on government-issued computers while they were being paid to police the financial system, an agency watchdog says.

    The SEC's inspector general conducted 33 probes of employees looking at explicit images in the past five years, according to a memo obtained by The Associated Press.

    The memo says 31 of those probes occurred in the 2 1/2 years since the financial system teetered and nearly crashed.

    The staffers' behavior violated government-wide ethics rules, it says.

    It was written by SEC Inspector General David Kotz in response to a request from Sen. Charles Grassley, R-Iowa.

    The memo was first reported Thursday evening by ABC News. It summarizes past inspector general probes and reports some shocking findings:

    • A senior attorney at the SEC's Washington headquarters spent up to eight hours a day looking at and downloading pornography. When he ran out of hard drive space, he burned the files to CDs or DVDs, which he kept in boxes around his office. He agreed to resign, an earlier watchdog report said.

    • An accountant was blocked more than 16,000 times in a month from visiting websites classified as "Sex" or "Pornography." Yet he still managed to amass a collection of "very graphic" material on his hard drive by using Google images to bypass the SEC's internal filter, according to an earlier report from the inspector general. The accountant refused to testify in his defense, and received a 14-day suspension.

    • Seventeen of the employees were "at a senior level," earning salaries of up to $222,418.

    • The number of cases jumped from two in 2007 to 16 in 2008. The cracks in the financial system emerged in mid-2007 and spread into full-blown panic by the fall of 2008.

    California Rep. Darrell Issa, the top Republican on the House Committee on Oversight and Government Reform, said it was "disturbing that high-ranking officials within the SEC were spending more time looking at porn than taking action to help stave off the events that put our nation's economy on the brink of collapse."

    He said in a statement that SEC officials "were preoccupied with other distractions" when they should have been overseeing the growing problems in the financial system.

    An SEC spokesman declined to comment Thursday night.

    About 16 percent of men with Internet access at work admit to looking at online porn while at the office, according to a 2006 survey by Websense Inc.

    Former SEC spokesman Michael Robinson said he shares the public's outrage about SEC staffers who enjoyed porn on the taxpayer dime when they were supposed to be keeping the markets safe.

    "That kind of behavior is just intolerable and atrocious," said Robinson, now with Levick Strategic Communications. He said he expects SEC Chairman Mary Schapiro and her team are "very focused on" the issue.

    Schapiro has had other worries in recent days. She has been parrying Republican attacks after announcing civil fraud charges Friday against Wall Street powerhouse Goldman Sachs Group Inc.

    Agency officials had hoped the charges would mark a new era of tougher oversight of Wall Street. They followed high-profile embarrassments including the failure to catch Ponzi kings Bernard Madoff and R. Allen Stanford.

    But soon after Goldman charges were filed, Republicans began questioning the timing of the announcement. The news came as the Senate prepared to take up a sweeping overhaul of the rules governing banks and other financial companies.

    Republican lawmakers also accused the SEC of being influenced by politics. The SEC's commissioners approved the Goldman charges on a rare 3-2 vote. The two who objected were Republicans.

    Schapiro is a registered independent who has been appointed by presidents of both parties.

    http://news.yahoo.com/s/ap/20100423/ap_on_bi_ge/us_sec_porn
     
  2. It's not the SEC that is the problem

    It's the same republican mofos in congress who would put a "Brownie" in charge of FEMA

    http://www.elitetrader.com/vb/showthread.php?s=&postid=2810444#post2810444
    FYI. Every republican in congress is against regulating this run away shit-train.

    Now they are busy raising money from wall street to bring back the status quo

    <object width="640" height="385"><param name="movie" value="http://www.youtube.com/v/jNcK1W237T4&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/jNcK1W237T4&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="640" height="385"></embed></object>

    See my thread on why republicans are corrupt and stupid. They have monkey brains that don't function correctly

    http://www.elitetrader.com/vb/showthread.php?s=&postid=2814207#post2814207

    It's now conclusively proven these people are incapable of doing anything productive or positive
     
  3. TraDaToR

    TraDaToR

    Watching porn 8 hours a day and burning DVDs( who BURN porn here? LOL ) ? This senior attorney is no joke.
     
  4. You're missing the point. You have attorneys who know data is retrieval, and this did this anyway. Its says someone was protecting them, and they did what they wanted w/no fear of retribution. At least until the world fell apart.
     
  5. sprstpd

    sprstpd

    I love how members of Congress are up in arms about porn watching at the SEC. First of all, I wonder how many people in Congress were watching porn at the same time "on the taxpayer's dime" and second of all, Congress pushed "home ownership for everyone" allowing the financial crisis to pick up steam. So they are more culpable than the SEC in this regard and everyone of them should be prosecuted, especially Barney Frank.
     
  6. These stories are all surfacing to yet again help a shady bill get through congress while providing yet another distraction to further "disgruntle" mainstreet.

    Go get 'em Barney ya fag...you are a true statesman. "Statesman" used as loosely as his sphincter.

    Adios.
     
  7. loool :D :D :D

    It's ok guys.

    Everyone does it! :p
     
  8. I'm not a fan of the Dems and Obama but one thing is for sure, the Republicans can't be trusted with anything. It's like everything turns to complete crap when they are in charge. Of course not everything is their fault, but they sure do have a knack for mucking things up.
     
  9. I find it quite curious that stories that aim to discredit the SEC and generally portray it in an unflattering light suddenly intensify now, right when the SEC is going after Goldies...

    Could be, and probably is, a coincidence, but makes you think, doesn't it? Next thing you know, papers will unearth some interesting "facts" about the prosecutor, etc...
     
  10. Good point.
     
    #10     Apr 23, 2010