The SEC fucks up a lot. A whole lot. This is more or less a given. David Einhorn has been saying this for eons– from personal experience, having dealt with the brain trust in the case of Allied Capital–, as has Bernie Madoff who, from the jail cell in which he rots, made no bones about the fact that he was eternally grateful that the regulator operated at the intelligence level wherein it wouldn’t know not to stick its (collective) dick in a pencil sharpener. Still, for those of you who need just a little more proof, SEC inspector general David Kotz is happy to add some color.
About two miles separate the Securities and Exchange Commission’s headquarters in Washington from the offices of Allied Capital, a District-based private-equity company. But over the course of an 18-month government probe into whether Allied Capital overstated the value of its holdings, nobody from the regulator ever visited the firm to ask questions, according to a new, internal SEC review that raises questions about the agency’s oversight of the financial industry.
The SEC’s watchdog found that the agency failed to properly pursue serious allegations made against Allied Capital, a public company that invests in small to midsize businesses. But after heavy lobbying by Allied Capital, the agency aggressively pursued [David Einhorn] who had challenged the value of Allied’s investments. Among other things, Kotz questions how SEC officials decide to open investigations and whether they are unduly influenced by outside lawyers — particularly former SEC officials — in conducting the probes.
Einhorn has stated that he wants to see the redacted version of Kotz’s report, which is understandable. In the event his request is not processed, however, we’ve a hunch as to the kind of stuff that was deemed necessary to blur out and Einhorny? It’s something innocent hedge fund managers like yourself should never have to see.
“The SEC fucks up a lot.”
dis Bess Levin is da best on da fuckin street.
The SEC should take the suggestion implicit in Bess’s tags and just change its name to the Tranny Porn Commission.
If you think Madoff ran a huge scam, Amway has ripped off millions of people for several decades, to the tune of 10s of billions of dollars.
Amway is a scam, and here’s why: Amway pays out as little money as they can get away with, so they support the higher level IBOs ripping off their downline via the tool scam.
As a result, about 99% of IBOs operate at a net loss, while the top 1% make several TIMES more from their Amway tool scam than from the Amway products. This was made illegal in the UK in 2008, but our FTC is unable to pull their heads out of their butts to stop it here.
Read about it on this website: http://thenetprofitgroup.yolasite.com and forward the information to everyone you know, so they don’t get scammed.
#3 – Down with self promotion
Sticking a collective dick in a pencil sharpener is harder than it sounds.
Just sayin’.
David Kotz=Buzz Killington
What do you think idiot savant means exactly? Because it doesn’t mean what you seem to think it means.
What do you think my joke tag means exactly? Because it doesn’t mean what you seem to think it means.
(Since you need it spelled out: the joke here is that the SEC is retarded in general but displays a remarkable aptitude in one field– as IS’s often do– in this case, that of surfing for tranny porn.)
Got any other brain busters for me?
See Greenlight’s holding here http://fundville.com/fund/1158/GREENLIGHT-CAPITAL-INC
7=Henry Blodget.
@7 – Go back to looking for the six fingered man.
to be fair… investigating that fraud shit can reeeally cut into your underaged tranny-porn time
Does Allied Capital have any ladyboys working in its office??? NO, It does not!
Nuff said!
Check into Paradigm Global Advisors. SEC was investigating R. Allen Stanford, who was a partner of Biden’s sons. The investigation was called off. After Madoff, they re-opened it and thus found out about Stanford as a fraud.
Who, what when and where was the SEC called off from this investigation. There was an article in the journal about the SEC’s role, but no investigation forthcoming.
Help’s to be a Senator’s son. These people should be prosecuted to the fullest extent of the law.
To be clear, there was never an allegation against Paradigm, just Stanford, who had a financial interest with them and had a joint fund.
Where is all the outrage?
Has anyone notiiced that Kotz is just like his dysfunctional buddies at the SEC? He investigated Bernie for a year and he couldn’t find anything other than incompetence? Who is he protecting? The Kotz Report on Einhorn is the same thing!
Kotz investigates Allied/Einhorn. Concludes Allied was able to take a valid and accurate analysis by Einhorn and using corrpt Washington insiders and SEC staffers, got the agency to turn its power on the person who was right?
How is this not a crimminal conspiracy on the part of everyone who participated in this matter? Why aren’t heads rolling at the SEC? Where is the Justice Department? Where is Chairman Dodd? Where is Barney Frank? Where is the Obama White House? Why is it that Kotz, once again, found nothing illegal? Did he go to the Helen Keller School of Law? Sorry, that’s not fair Helen Keller would have found corruption here.
The Senate is going to debate the mother of all financial services reform legislation. Do you think there is even a single sentence in this bill that would stop this from happening again? Some new legislation that would force accountability at the SEC?
Sadly, there is nothing on this obvious topic.
Come on Dealbreaker, call a spade a spade. What are you afraid of?