Last month the Senator asked the SEC to furnish information regarding how it handled multiple referrals over the last decade from FINRA about suspicious trading by SAC Capital (here). Since several former SAC traders have been implicated in the on-going expert network insider trading inquiry and pleaded guilty there is a clear basis for congress to wonder what happened to those referrals. The SEC refused…. The question now is, should the Commission’s own rules apply to it? Should the Senator and the public label the agency uncooperative and draw an adverse inference? Is it appropriate to assume that the SEC is just covering up a series of failures?
Read more: It is Time for the SEC to Follow Its Own Advice — SEC Actions
It doesn’t take a “rocket scientist” to conclude that the SEC refusal to furnish information requested by a U.S. Senator is just another example of the SEC having hands as dirty as those individuals and companies on Wall Street that have flouted the law to enrich themselves at the expense of the public. The crash of 2008, and the ongoing failure to catch Madoff while covering up its why it failed are just two examples that clearly demonstrate that the SEC serves Wall Street, not Main Street.
If Congress fails to impose its will on the SEC, then this nonsense will continue and there will be another crash, and Wall Street will come crying to Washington that they are still too big to fail and need to be bailed out (not forgetting that they caused all of this to happen).
Since most of Congress is “owned” by Wall Street, it appears likely that the SEC will weather this storm too. Its just a matter of time before our entire financial infrastructure comes crashing down, brought down by the weight of greed on Wall Street and the quest to never let a Congressional law get in the way of their enriching themselves.