harrym.jpgIt’s Harry versus the SEC this morning, and there aren’t a lot of pulled punches.
Harry: I think the losses in Europe will be bigger. The European losses are often on unreported income and won’t likely be part of the history of the scam.
Harry: It took just a couple weeks for me to lose confidence in the New York Office of the SEC.
Harry: “In Wall Street there is a code of silence and when you live in a glass house you do not throw stones.”
Oh boy.
Is there a secret blacklist of fraudsters that the Wall Street code-of-silence keeps secret? Is there a list of these malefactors? (A more blatant attempt to justify subpoena power I have not lately seen).
Harry: Yep.
The secret cabal of fraud protectors. Wow.
Isn’t handing over documents wearing gloves [to avoid leaving fingerprints] a bit paranoid:
Harry: When Madoff attracts Russian mob money and drug cartel money, and with such a large fraud, I didn’t expect to be long for this world if my name got out.
Harry: Disband the SEC, zero out their budget and invest in the state regulators that, pitbull like, do more with less than the SEC.
What could be done to reform the SEC?
Harry: Put in experienced professionals. Give them Bloomberg. (They currently share one terminal per regional office).
What about auditing? What about rotating auditors?
Harry: SEC Auditors are not trained in human intelligence gathering. They come in, sit down, and are fed controlled pieces of paper. They need to be talking to everyone and interacting.
Should we (Lincoln Act like) give bounties for financial whistle blowers?
Harry: You bet.
Harry: We’ve had “zero enforcement” for the last 8 years.
Harry: I gave the SEC a drawing, a roadmap, pictures and a flashlight and they still couldn’t find anything.
Is Mr. Madoff confined right now?
Harry: Yes, he’s under Penthouse arrest.
We need thousands more like you out there.
Harry: Thank you.
You were dealing with a ruthless person, in bed with other ruthless people. These kind of characters are sure to make you concerned for your life. The American people need to know who you are! You aren’t a person off the street. You have credentials, baby! Won’t you please share some of your credentials with the public?
Harry: CFA, CFE, MSF, BA, CIO, Major in the Army, Reservist, in Special Operations….
(Not bad!)
Harry: The regulators need to earn their paycheck and the SEC needs to be swept with a very wide broom.
Who do you want to play you in the movie?
Harry: As long as it is a Red Sox fan.
Harry: Fairfield Sentry was getting $280 million a year in fees from Madoff.
Is it better to be corrupt (FINRA) or incompetent (SEC)?
Harry: FINRA gets an A+ for corruption and the SEC gets an A+ for incompetence.
Are you sure there is a Russian mob and organized crime connection?
Harry: We knew because of the offshore funds. The only reason to be offshore is to hide dirty money. Madoff’s success made it almost a sure bet there was dirty money in there.
This is the quote of the day:
Harry: To all the Russian mobsters and drug cartels out there, I am one of the good guys. I was looking out for your accounts. Just keep that in mind.
Sorry, I was wrong, this is:
Harry: If you flew the entire SEC staff to Boston, and sat them down in Fenway Park for the day, they wouldn’t be able to find first base.

Comments (47)

  1. Posted by Anal_yst | February 4, 2009 at 11:21 AM

    Ok wtf my firm’s block on DB comments apparently is only in IE, word

  2. Posted by guest | February 4, 2009 at 11:23 AM

    Maybe you came in late, but he’s also called the NASD “corrupt”; said that Spitzer was a Madoff investor; called Madoff losses at $20-$30B; and said he’d be too busy to take over the SEC for a couple of years.

  3. Posted by guest | February 4, 2009 at 11:25 AM

    it’s a wonder the market doesn’t drop 6000 points given this testimony. the guy’s admitting wall street is a house of cards!

  4. Posted by guest | February 4, 2009 at 11:26 AM

    @1
    It’s not yr firm; it’s some combination of IE7 being a piece of shit, and this site being the product of the coding genius of a retarded mongoose.

  5. Posted by guest | February 4, 2009 at 11:27 AM

    this guy should head the SEC because that’s the only job he’ll be getting in this market. he’s trashing everyone on wall street! who would want to dare cross him if he worked for you.

  6. Posted by guest | February 4, 2009 at 11:27 AM

    @3 even weak forms of the EMH stipulate that only new information can affect prices

  7. Posted by guest | February 4, 2009 at 11:33 AM

    @4- LOL, and who ever said a monkey and a typewriter couldn’t write A Midsummer Night’s Dream.
    SPODE

  8. Posted by guest | February 4, 2009 at 11:35 AM

    @6: EMH also requires that investors be rational. As EMH is false, the idea that there are rational investors is also negated.

  9. Posted by guest | February 4, 2009 at 11:36 AM

    god these congressmen are a fucking joke.

  10. Posted by Lowly Assistant | February 4, 2009 at 11:36 AM

    Harry: Disband the SEC, zero out their budget and invest in the state regulators that, pitbull like, do more with less than the SEC.
    Holy fucking shit. Is America back, baby? Or what!

  11. Posted by guest | February 4, 2009 at 11:37 AM

    OK..we already know Wall Street is a “house of cards”. My model says that news is priced in today anyway. Like Dick Cheney says, “So what?”

  12. Posted by merkin capital partners | February 4, 2009 at 11:37 AM

    kudlow is destroying the commerce sec

  13. Posted by guest | February 4, 2009 at 11:38 AM

    @6 you hit the nail on the head.
    the market will go the way of the Lycans as all possible surprises must be to the upside.

  14. Posted by guest | February 4, 2009 at 11:38 AM

    Alan Grayson is an uber douche.
    Not shocking that he’s from Florida.

  15. Posted by guest | February 4, 2009 at 11:39 AM

    Dealing with the SEC, I know they sit around getting fed controlled pieces of paper. Kind of like a horse and a feeding trough.
    Who needs the SEC, Congress, Wall Street. No value added by anyone of them.

  16. Posted by guest | February 4, 2009 at 11:40 AM

    The SEC is going to have this dude wacked.

  17. Posted by guest | February 4, 2009 at 11:41 AM

    if the people who got ripped off were russian oligarchs and latin drug cartels with dirty money and won’t be reporting losses, then why are we having this hearing? it’s a self-correcting ponzi scheme, no? they should stop the hearing, set bernie free on the street and let the oligarchs finalize the justice.

  18. Posted by guest | February 4, 2009 at 11:41 AM

    Harry: We’ve had “zero enforcement” for the last 8 years.
    Hey Bush, go ahead and change the oil since you’re already under the bus.
    SPODE

  19. Posted by guest | February 4, 2009 at 11:44 AM

    SPODE: Love the “change the oil” comment. Giving you a gold star for that one.

  20. Posted by guest | February 4, 2009 at 11:44 AM

    Rep. Al Green is hilarious.

  21. Posted by guest | February 4, 2009 at 11:45 AM

    Harry comes across to me as a straight guy and a hero.

  22. Posted by guest | February 4, 2009 at 11:46 AM

    ummm… is anyone thinking walter mitty here?

  23. Posted by guest | February 4, 2009 at 11:48 AM

    I appreciate Harry’s respect for the AG offices in Boston and NY for following up when the SEC didn’t.

  24. Posted by guest | February 4, 2009 at 11:50 AM

    Harry is a straight shooter.
    It’s time for the SEC and Wall Street to engage some serious damage control operatives. EP, are you volunteering? They already got “William Richards” I believe.

  25. Posted by guest | February 4, 2009 at 11:51 AM

    revenge of the nerds: harry strikes back.
    anyone looked at the madoff family political contributions?
    just wondering.

  26. Posted by guest | February 4, 2009 at 11:51 AM

    @1
    guess you momma unleashed cybernanny on your ass…

  27. Posted by guest | February 4, 2009 at 11:51 AM

    I remember something about an Al Green who got attacked by a woman:
    “At the height of his popularity, Green’s former girlfriend, Mrs. Mary Woodson, broke into his Memphis home in October 1974 and poured boiling grits on the singer as he was bathing, inflicting second-degree burns on his back, stomach and arm…Green interpreted the violent incident as a sign from God that he should enter the ministry.”

  28. Posted by AJ | February 4, 2009 at 11:55 AM

    I want someone to testify before Congress and just cut them off when they start rambling. “I’m sorry sir, is that a question or do you just like hearing yourself talk?”

  29. Posted by guest | February 4, 2009 at 11:56 AM

    wait markopolous didn’t bust madoff. madoff broke down.

  30. Posted by Anal_yst | February 4, 2009 at 12:00 PM

    thanks ‘gents, problem, solution

  31. Posted by guest | February 4, 2009 at 12:03 PM

    8: EMH is negated BECAUSE investors are not irrational, not the other way around.

  32. Posted by guest | February 4, 2009 at 12:09 PM

    The EMH is neither E nor H, discuss

  33. Posted by guest | February 4, 2009 at 12:10 PM

    You really got to like the chutzpah of the guy. I am impressed.

  34. Posted by guest | February 4, 2009 at 12:12 PM

    His putting the SEC behind the IRS is probably very offensive to the SEC.

  35. Posted by guest | February 4, 2009 at 12:19 PM

    Lovely. The dipshits are back. See 35.

  36. Posted by guest | February 4, 2009 at 12:20 PM

    I wonder how vulnerable Bernie Madoff’s Park Avenue neighbors are feeling in light of the mob link. I’m sure they’d be more than happy to help him clear out, even if Bernie did post nice letters under their doors.

  37. Posted by guest | February 4, 2009 at 12:25 PM

    any faith or trust left in what was once called Wall Street is now gone.

  38. Posted by guest | February 4, 2009 at 12:26 PM

    “The only reason to be offshore is to hide dirty money.”
    Huh? That comment is more than a little overboard. I guess he doesn’t feel safe discussing how he really knew, but he should have been able to come up with a better dodge-this-question answer.

  39. Posted by Anal_yst | February 4, 2009 at 12:29 PM

    @39
    Agreed, there are several other more popular reasons to be offshore, most common, to hide $ from authorities, whether dirty, kinda dirty, or relatively clean, but whatever, lets not let “facts” intrude in this fantasy

  40. Posted by guest | February 4, 2009 at 12:38 PM

    what was up with this– “How do you say your name, Marko-polos, Markop-o-lous, Mark….” “I answer to all.”

  41. Posted by guest | February 4, 2009 at 12:43 PM

    41/42, whether the president is a dipshit is unrelated to his race. That’s why 35 is a dipshit. Apparently you fall in the same category with your chinese/indian comment.

  42. Posted by guest | February 4, 2009 at 12:46 PM

    US Investor —> Offshore tax haven feeder funds —> Madoff
    Russian or Latin American Mob —> Offshore feeder funds —> Madoff
    The US investor might be hiding money, or who the hell knows. The mob is feeding dirty money, by definition. The thing is that nobody can really know how the sources are distributed.
    One thing should be clear, if Marko gets whacked, it would not be because of the mob. The mob know exactly who their targets are, if they care to follow up. Most likely they’ll let this one pass. Too many in law enforcement looking right now.

  43. Posted by Equity Private | February 4, 2009 at 12:48 PM

    “One thing should be clear, if Marko gets whacked, it would not be because of the mob. The mob know exactly who their targets are, if they care to follow up. Most likely they’ll let this one pass. Too many in law enforcement looking right now.”
    The drug cartels don’t care about law enforcement. Not at all.

  44. Posted by AJ | February 4, 2009 at 1:01 PM

    @46 And the Russians *really* don’t care about law enforcement

  45. Posted by guest | February 5, 2009 at 7:04 PM

    good thing that markopolos brought the issue to the attention of his congressman (stephen lynch, referenced @ 0:16 in the clip below) in a timely fashion.
    http://www.youtube.com/watch?v=uw_Tgu0txS0

  46. Posted by crestonave | February 6, 2009 at 7:22 AM

    The Ruskies only hate him because he’s a Red Sox fan.

  47. Posted by guest | February 13, 2009 at 6:01 PM

    Does anyone but me find it odd that Mary shapiro – head of NASD and FINRA for a total of 13 years — CEO–of THE broker dealer oversight didnt pick up on Madoff — Queen Mary, not only got $7 million on the way out of finra but now has the corner office at the SEC. Helps I guess that her husband “chas” gave obama close to a million dollars.

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