David Kotz, the Securities and Exchange Commission’s Inspector General, told Congress January 5 that his office has been “working at a rapid pace” since December 17 to investigate why the SEC failed to shutter the Bernie Madoff ponzi scheme.
This matter, he told members of the House Financial Services Committee, “requires immediate attention,” and he promised to issue “rolling reports on various issues” over the next several months to explain why the SEC failed to act. “We will look at situations and rules and policies we can recommend regarding red flags that are out there,” Kotz said. “My focus will be why the SEC didn’t take action.”