Inspector General Admits SEC Pretty Much Sucks At Its Job

The SEC’s inspector general has released a jailhouse interview in which his royal Ponziness, Bernie Madoff himself, explains that he got away with his scheme because the SEC basically sucks.

From the NYT:

In the interview, Mr. Madoff said that the young investigators who pestered him over incidentals like e-mail messages should have just checked basics like his account with Wall Street’s central clearinghouse and his dealings with the firms that were supposedly handling his trades.

“If you’re looking at a Ponzi scheme, it’s the first thing you do,” he said.

Those simple steps, he added, could have revealed years earlier that he was running the largest Ponzi scheme ever, a crime that has now dragged the S.E.C. into the worst scandal in its 75-year history. “It would have been easy for them to see,” he added.

We are reminded of a Frontline episode about Madoff in which they cover how someone entirely unrelated to the SEC or Madoff figured out the Ponzi scheme and was ignored.

Way to go, SEC!

Lapses Helped Scheme, Madoff Told Investigators [NYT]