July 30, 2010
What is this ??? Instead of helping the Madoff victims or stopping the vicious Madoff trustee from victimizing them again, Congress passed a new law which allows the SEC to retroactively cover up its incompetence in the Madoff situation by not having to produce relevant documents under the Freedom of Information Act ? The SEC could have simply redacted some names-it doesn't need to be protected from revealing its own incompetence or fraudulent behavior.
This is outrageous-hard to believe how much the SEC has blown the opportunity to make things right and continue to make a bad situation worse.
The SEC should not interpret the new law to apply retroactively to the Madoff situation and should come clean. The SEC should also push for legislation stopping Madoff trustee clawback suits and allowing Madoff victim recovery based upon their reasonable expectations which equate to the last statement they received from the broker-just as Congress intended with the SIPA-and stop protecting the SIPC and its rich broker members from having to pay for what was their fault.
See headline below:
Financial reform bill signed by President Obama gives SEC 'free pass'
New York Daily News