The SEC mission, according to their site, is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
Unfortunately, the SEC’s inability to act on their mission, post-Madoff, is problematic. This is not unusual when you have a conglomeration of bureaucrats.
The SEC can’t get its act together and this latest fiasco highlights that.
The Washington Post reported this story of SEC inaction –
A federal probe of possible market manipulation and insider trading by a hedge fund manager was derailed when Securities and Exchange Commission officials found that an agency supervisor had improper contact with the fund manager, according to a report released Wednesday by the SEC’s inspector general.
Since the SEC employee had improper contact, the SEC didn’t pursue the corrupt hedge fund manager. Their reasoning is that he (the corporate hedge fund manager) could use the improper contact in his defense. They also didn’t want a cloud of suspicion over the SEC.
The SEC is good at ducking for cover, but not so good at fulfilling their mission.
These stories generally go unnoticed until a Bernie Madoff comes along and it’s in peoples’ faces.