( – promoted by buhdydharma )
In this post at Democratic Underground, EFerrari asks How much of economic meltdown is Iran Contra, continued? The writer mentioned two reports that haven’t received a lot of press: (emphasis mine)
First, there’s this from a post dated Feb. 20, 09 on Rep. Kucinich’s website Kucinich: Who told SEC to “Stand Down” on Sanford Probe?
Chairman of the Domestic Policy Subcommittee, Congressman Dennis Kucinich (D-OH) today sent a letter to Ms. Mary Schapiro, Chair of the Securities and Exchange Commission (SEC) requesting documents that could reveal which government agency told the SEC to “stand down” rather than take enforcement action against the Stanford Group in October 2006 as has been reported by the New York Times.
Recent media reports have indicated that the SEC was aware of improprieties at Stanford Financial Group as early as October 2006, but withheld action at the request of another government agency.
The post on the Congressman’s website continues:
In…the February 17th edition of the New York Times, an SEC official said that an inquiry had been opened on Stanford in October of 2006. According to the Times report, an associate regional director of enforcement said the SEC “stood down” on its investigation as a result of the intervention of another federal agency…
“If the SEC did indeed begin an inquiry in 2006 and was called off by another agency, our subcommittee will demand that the SEC reveal the name of that agency which told it not to enforce federal laws which protect investors,” said Chairman Kucinich…”
Going back a few months before the SEC inquiry into allegations of security fraud against Stockbroker “Sir” Allen Stanford was “called off by another unidentified federal agency” Diarist EFerrari states that an article published on May, 2006, in Business Week reported that the Bush Administration added to the Executive’s little know power to exempt businesses from “reporting requirements”: “Intelligence Czar Can Waive SEC Rules–Now, the White House’s top spymaster can cite national security to exempt businesses from reporting requirements”. All types of investment can be risky due to fraudulent behaviour, therefore it is crucial that a trustworthy broker is chosen to do business with such as Forex Broker, you will want to look at reviews to educate yourself before taking part in the financial world.
President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.
Unbeknownst to almost all of Washington and the financial world, Bush and every other President since Jimmy Carter have had the authority to exempt companies working on certain top-secret defense projects from portions of the 1934 Securities Exchange Act. Administration officials told BusinessWeek that they believe this is the first time a President has ever delegated the authority to someone outside the Oval Office. It couldn’t be immediately determined whether any company has received a waiver under this provision…
In addition to refusing to explain why Bush decided to delegate this authority to Negroponte…The White House wouldn’t comment on whether Negroponte has granted such a waiver, and BusinessWeek so far hasn’t identified any companies affected by the provision. Negroponte’s office did not respond to requests for comment… John C. Coffee, a securities-law professor at Columbia University, speculated that defense contractors might want to use such an exemption to mask secret assignments for the Pentagon or CIA…
So, maybe the Congress could just ask the SEC and get an answer to why they didn’t investigate people like Stanford and Madoff? Well, when the House Banking Committee tried asking about why the SEC didn’t investigate Madoff, (after multiple contacts by Whistleblower and certified fraud investigator Harry Markopolos), the SEC Lawyer Clammed Up, Citing Executive Privilege
Despite republicans and some Democrats attempts to shift all of the blame for the economic meltdown on irresponsible people taking out loans they couldn’t pay back-we’ve been finding that much of the blame for the economic crisis lies with:
Greedy Wall St. bankers and mortgage industry professionals who gave loans to anyone with a pulse.
Now we’re finding that the government itself was apparently giving cover to at least two high profile scammers-and who knows how many more crooks that were shielded by the government agencies whose mission purportedly is to protect investors from crooks and fraudulent schemes. So far, it seems that only Representative Dennis Kucinich is asking the right question: “Who told the SEC to Stand Down”?
Thank you, Congressman Kucinich–It’s time we heard the answers, and it’s time to “follow the money”.