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Judges are criticizing the SEC for being too easy on Wall Street Crooks

Cross Post from IfLizWereQueen

For the second time in the past month a federal judge has criticized the Securities and Exchange Comission for beig too soft with corporate enforcements.

A federal judge in Milwaukee told the SEC that its proposed settlement with the Koss Corp. is too vague and asked the agency to provide more facts by January 24. In October the SEC charged Koss Corp., a headphone-manufacturer, with accounting fraud.

Wednesday’s ruling from U.S. District Judge Rudolph Randa is the latest in a string of actions by federal judges to challenge the way the government agency enforces regulations.

Last February, SEC chairwoman Mary Schapiro said that the agency doesn’t have enough money to satisfactorily police Wall Street or draft new regulations required by the Dodd-Frank financial reform law.

Source for this news:  Huffington Post.

Excuse me if my sarcasm is showing, but I can’t help but wonder if these judges themselves are not putting on a show.  As far as I’m concerned, that is exactly what they are doing–trying to make it appear as if something is being done to corral the greed of Wall Street investors.   Still we can hope while still continuing with our concerted efforts to throw the majority of elected officials from both parties out of office in 2012.  Don’t let Hope dull our sensibility like it did in 2008.



ILWQ COMMENTS – Mary Schapiro who Obama put in charge of the SEC is just another one of his corporate stooges for Wall Street.  Why on earth would anyone expect anything more than a hand slap for Wall Street criminals from the former CEO of Duke Energy, one of the largest Wall Street criminals of all?

I had Mary’s number back in December of 2009, even before two years ago when I wrote in a post: “. . . Mary Schapiro–the chairman of the SEC--a woman who has been an SEC commissioner (regulator since 1988 having served Reagan, Bush I, Clinton and Bush II).  A lot of experience.  Kinda makes you wonder why SHE didn’t catch Madoff if she is so hot as a regulator.

But never mind that.  Look at her history as Director of Duke Energy since 1999.  When she took over, Duke Energy ranked 46th as the worst polluter in the USA.  Today, after 9 years of Mary’s leadership, Duke Energy now ranks as the #13 worst polluter in the USA.  That’s some regulating, Mary.  They also love cutting off the tops of mountains–another great recommendation for Mary and her respect for the environment and people.  She’ll be a perfect fit for the SEC.

Schapiro is another Wall Street toady who believes in “self regulating” markets. Right. As the head of the Financial Industry Regulatory Authority (FINRA) she twiddled her thumbs while the financial giants increased their leverage to gigantic levels and spread their derivatives contagion to every part of the system.

Schapiro also missed the Madoff scandal, the auction-rate bond fraud, the blow up at Lehman Brothers, and the    .  .  . ”

Maybe things will change–but not before we throw them all out and replace them with non-millionaire, non-Wall Street investors.

Thanks in great part to Occupy Wall Street, most of us know that the huge problem is our financial system–especially the Wall Street Casino that is fueled by the greed of the rich. The economic woes of the USA are systemic and anyone with half a brain  knows this.  The financial system of the USA is broken for the majority of us.  It scams and robs us daily.  Wall Street is a corrupt system that works for the rich few, for 12% of Americans while it is destroying the economy of our nation and American lives with it for the rest of us who compromise the majority.

And yes, that number is 12%, not 1%.  The 1% could not do what they are doing to the rest of us without the willing assistance of the other 11% of the wealthiest who are invested in Wall Street (and that currently includes all members of Congress). The only solution for America is for Americans to take all their investments out of Wall Street and invest them locally in their communities NOW before it is too late.  If you think that Wall Street can be improved working from the inside out, then you are either uninformed or totally in denial.

The Chief Operating Officer of the SEC enforcement division is Adam Storch  a former Goldman Sachs employee.   For the five years prior to his appointment by the Obama administration in Oct of 2009, Storch worked at Goldman Sachs, most recently as vice president in Goldman’s Business Intelligence Group.  The position, along with the division, was created as a reaction to the subprime mortgage crisis.  If Storch is not a fox in the henhouse, there has never been one. If you think that the system can or will be improved from the inside out, you are dreaming.

Between the leadership of Schapiro and Storch–both backed by Barack Obama–why would anyone in their right mind expect Wall Street reform?  Just how damn gullible are we?

Furthermore, its operations are based on broken economic cliche drivel that was originated over 50 years ago in the late 1950?s by a Chicago economist by the name of Milton Friedman.  This economic ideology for the rich is so entrenched in our culture that many Americans equate it with our founding fathers instead of a loud-mouthed economics professor from the University of Chicago in the late 1950?s.  It’s time we had an economic ideology that works for the world–not just the rich from DC, New York and Chicago.





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Liz Berry

Liz Berry