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Who Will Watch the Watchers?

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Well, we guess it’s nice that the SEC is considering today letting Senate investigators interview SEC staffers about the allegations that it fired an investigator looking into insider trading allegations at Pequot Capital when his probe started towards Wall Street’s highest echelons. All along we’ve thought that everyone involved wasn’t treating these allegations seriously enough—the Senate committee charged with overseeing the SEC seemed to take a pass, the SEC barely even shrugged it off and most media outlets haven’t paid enough attention to the story. Especially after the Senate judiciary committee finally brought in the fired SEC investigator, Gary Aguirre, and the allegations were made under oath and penalty of perjury, the charges deserved better than the treatment they initially received.
A few weeks ago, Senators finally started paying real attention to the charges but the SEC stalled, saying it needed the full commission to vote on whether the Senate could look into the charges. If the SEC does anything but vote to fully comply with a Senate investigation, it will be time for the President to become involved. Perhaps the Justice Department needs to appoint a special prosecutor. You wouldn't think that these were the kind of charges the SEC would want to investigate internally—not if it wants to retain any credibility. But then you don't work for the SEC.
SEC May Vote On Sharing Hedge Fund Probe Info With Sens [Dow Jones Newswire]