Lawmakers grill SEC on Madoff

Senate Banking Committee holds second hearing on the Security and Exchange Commission's failure to identify Bernard Madoff's $50 billion fraud.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Ben Rooney, CNNMoney.com staff reporter

Inside Madoff's beach house
As the government prepares to put Bernie's Montauk home on the market, a U.S. Marshal gave the press a tour of the house. Here's what they saw.

NEW YORK (CNNMoney.com) -- Senate lawmakers took the Securities and Exchange Commission to task Thursday for failing to prevent Bernard Madoff from perpetrating one of the largest financial frauds in U.S. history.

"Bernard Madoff stole $50 billion," said Sen. Christopher Dodd, chairman of the Senate Banking Committee, in prepared remarks. "And the Securities and Exchange Commission didn't stop him."

"There can be no excuse for that colossal failure," he added.

Dodd's remarks came at the beginning of the Committee's second hearing to investigate the SEC's shortcomings in the Madoff case.

Madoff, 71, was convicted of operating a Ponzi scheme and defrauding thousands of investors. He pleaded guilty and was sentenced to 150 years in prison in June. Prosecutors have said it was the largest investor fraud ever committed by a single person.

An internal report from the SEC's inspector general released last week found that the nation's primary financial watchdog overlooked "more than ample" evidence, including six complaints, that red-flagged the massive fraud.

The hearing comes one day after officials in Massachusetts released transcripts of a phone conversation in which Madoff lectured colleagues on how to avoid being scrutinized by the SEC.

"You know, you don't have to be too brilliant with these guys," Madoff told them, according to the transcript. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
These 10 food trends could dominate 2015 So long, kale. Here's what's expected to shake up the food industry next year. More
Beyond Russia: Geopolitical hot spots in 2015 Investors beware: These 5 global crises are likely to rattle the stock market and world economy. More
These 20 antique guns could fetch big bucks Morphy Auctions in Pennsylvania is putting nearly 1,000 old guns on the block. Here are just a few. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.