We've been pointing out for a long time that the really (potentially) explosive issue raised by former SEC investigator Gary Aguirre was not the now-officially dismissed suspicions of insider trading by Pequot Capital or illegal tipping by John Mack, but the still largely univestigated charges of favoritism at the SEC. Recall that Aguirre claimed he was fired from the SEC for trying to subpoena John Mack, who was then about to become the top man at Morgan Stanley. Now the mainstream media, for reasons of its own, has enjoyed playing up Mack's connections to the Bush administration but a more relevant fact is probably his status as the head of a major Wall Street bank. This raises the fear that the SEC has been captured by the very industry its supposed to regulate. (By the way, even this might be too optimistic, since the words "been captured" imply that the regulatory agency was not created, owned and operated by the largest investment banks right from the start.)
In today's Wall Street Journal, the Aguirre makes it clear that this was the whole point of his testimony to the Senate.
My allegations to the Senate have focused only on the SEC. I have alleged: (1) senior SEC officials gave Mr. Mack favored treatment; (2) those officials fired me for questioning that favored treatment; and (3) the SEC's inspector general whitewashed the whole affair.
My Charges Against SEC Are Justified [Wall Street Journal]
Posted by Sparky , Jan 04, 2007 1:02PM
Hats Off to GARY AGUIRRE!
In Sparky's humble opinion, it's about time someone stood up to these crooked and well-connected Wall Street Elite!
This nation's all-important equity markets are in utter shambles, the growing stench is slowly but steadily destroying decades of global credibility; and confidence, despite all these phony record index highs, is waning worldwide.
Conclusion: IMHO, Wall Street's future would be much more secure if we had a lot more regulators like Gary Aguirre and far fewer industry leaders like Morgan Stanley's infamous John J. Mack.
All IMHO -
Sincerely,
Sparky
Posted by CMKX was damaged by the SEC as well , Jan 08, 2007 2:50PM
They failed to stop a slew of stocks under one dollar from being victims of naked shorting, look at Lucent trading in the billion share volume for years and not a mention of naked shorting till it was too late!
SEC just failed and they went after companys only where they could line their pockets with deep pocket fines and int he process protect the DTCC who had failed to delivers in the billions? imo its genicide!