Tags: congress | madoff

Congress Takes On Madoff Case Next Week

Tuesday, 30 Dec 2008 08:22 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

WASHINGTON — Lawmakers will take their first close look next Monday at financier Bernard Madoff's alleged $50 billion fraud and why the Securities and Exchange Commission failed to discover the scandal.

Information gleaned from the hearing will help guide Congress as it attempts to reform laws regulating the U.S. financial system, said Rep. Paul Kanjorski, a Pennsylvania Democrat and chairman of the House capital markets subcommittee.

"Madoff's actions have further weakened the already battered investor confidence in our securities markets," Kanjorski said in a statement on Monday.

Madoff, a former Wall Street fund manager, is accused of running a $50 billion fraud that ensnared investors and charities around the world, according to authorities.

Critics say the SEC missed warning signs and failed to uncover the scandal until Madoff's sons went to the authorities and told them he confessed to the fraud. SEC Chairman Christopher Cox has asked an internal watchdog to probe the investor protection agency's conduct in the case.

Kanjorski said the Congressional hearing will examine if the SEC had enough staff and budget to police the markets.

"These proceedings will help us to discern whether or not the SEC had the resources needed to get the job done, how such a sizable scheme could have evaded detection for so long, and what new safeguards we need to put in place to protect investors," the lawmaker said.

Kanjorski did not identify who will testify at the hearing, scheduled for the day before the new Congress convenes. President-elect Barack Obama will be sworn into office on January 20.

The Madoff scandal, Kanjorski added, "provides a glaring example" of why Congress must launch the biggest reform of financial markets regulation since the Great Depression. Other lawmakers, including Senate Banking Committee Chairman Christopher Dodd, have said they want to streamline and improve the tangled U.S. regulatory structure that oversees banks and financial services.

Madoff is accused of running a giant Ponzi scheme, where he paid off early investors with money from later investors. He faces a criminal fraud charge filed by the U.S. Justice Department and a civil lawsuit filed by the SEC.

A federal judge in New York City recently set a December 31 deadline for Madoff to give the SEC a verified written accounting of his firm's records, bank accounts and other investments.

In addition to the federal lawsuits, a New York City investor who said she gave Madoff $2 million to manage sued the SEC and is seeking $1.7 million in damages from the federal agency.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

No Dem Senate Candidate on Kansas Overseas Ballots

Friday, 19 Sep 2014 22:13 PM

There's no Democratic Senate candidate listed on some 500 Kansas ballots mailed to overseas voters this weekend – a setb . . .

RNC's Priebus Slams Wis. Governor Candidate for Jobs Plan Fiasco

Friday, 19 Sep 2014 19:22 PM

Republican National Committee Chairman Reince Priebus slammed Wisconsin Democratic gubernatorial candidate Mary Burke on . . .

DNC Raises $7M in August, Has $11M Banked

Friday, 19 Sep 2014 18:42 PM

The Democratic National Committee raised $7 million last month and has $11 million banked.The DNC on Friday filed its Au . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved