Agency staff “destroyed over 9,000 files” related to preliminary agency investigations, according to a letter sent in July to Grassley, the top Republican on the Senate Judiciary Committee, and obtained by MarketWatch.
The allegations were made by SEC enforcement attorney, Darcy Flynn, in a letter to Grassley. Flynn is a current employee, and according to the letter, received a bonus for his past year’s work.
Flynn alleges the SEC destroyed files related to matters being examined in important cases such as Bernard Madoff and a $50 billion Ponzi scheme he operated as well as an investigation involving Goldman Sachs Group Inc. trading in American International Group credit-default swaps in 2009.
“It doesn’t make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what timeframe, and to what extent its actions were consistent with the law.”
Goldman Sachs VP Changed His Name, Now Advances Goldman Lobbying Interests As A Top Staffer To Darrell Issa
Issa’s demand to regulators is exactly what banks have been wishing for. Indeed, Goldman Sachs has spent millions this year trying to slow down the implementation of the new rules. In the letter, Issa explicitly mentions that the new derivative regulations might hurt brokers “such as Goldman Sachs.”
Haller, as he is now known, went by the name Peter Simonyi until three years ago. Simonyi adopted his mother’s maiden name Haller in 2008 just as he was leaving Goldman Sachs as a vice president of the bank’s commodity compliance group. In a few short years, Haller went from being in charge of dealing with regulators for Goldman Sachs to working for Congress in a position where he made official demands from regulators overseeing his old firm.
– After completing his law degree in 2000, Haller was employed by Federal Energy Regulatory Commission as an economist, and later with the Securities and Exchange Commission in the Office of Enforcement.
– In April of 2005, Haller resigned from the SEC to take a job with Goldman Sachs. He soon began lobbying the SEC on behalf of Goldman Sachs.
– On September 2, 2009, Haller left Goldman Sachs to take a job with the law/lobbying firm Brickfield Burchette Ritts & Stone.
– In January of 2011, Haller was hired to work for Issa on the Oversight Committee. Under the supervision of Haller, Issa sent a letter dated July 22, 2011 to bank regulators (including the heads of the Federal Reserve, FDIC, FCA, CFTC, FHFA, and Office of Comptroller) demanding documents to justify new Dodd-Frank mandated rules on margin requirements for banks dealing in the multi-trillion dollar OTC derivatives market, like Goldman Sachs.
If the allegations are found to be true this would be a detrimental blow to the SEC’s already shoddy reputation. The agency has been publicly flogged for missing the Madoff fraud. Since then it’s been trying to redeem itself by restructuring its operations and by adding new lieutenants like chief enforcement officer Robert Khuzami. Further the SEC has been heavily criticized for its revolving door in which its employees leave to work for Wall Street and vice versa thus created a conflicted environment.
Quote by TriSec:
Morning, folks!
Another day that somebody in IT seems to have forgotten to turn on Websense, so I'll take advantage of that while I can.
An update from TriSec land...lots of glum faces around the office; we had 31 layoffs yesterday. (Not my department, by the Grace of Allah.) But seeing that I've been here not quite a year and this is the 3rd round of layoffs already....the company is definitely moving in the wrong direction.
So, I'm back on the market again. Fortunately, some of the payors in the area are in decent shape, and an old friend already has a lead on two positions for me, including one that has been open almost a year (and he had that same lead last year at this time.) It would mean going back to the dark side, though.
Remember, I used to work for the payors, and I was that bastard that denied claims for no reason. The hell of it is, it was interesting work, I was good at it, and it paid well. Beats living in the car, right?
Anyway....
Quote by Raine:
Mala. As we leaving the Fair a lady jumped out of the passenger side of the car she was in and started screaming at the security guy for not letting them leave the fair as fast as she wanted.
So I yelled at her *We all wanna leave get back in your damn car!* and then the security guy let us drive out first.![]()
Quote by wickedpam:Quote by Raine:
Mala. As we leaving the Fair a lady jumped out of the passenger side of the car she was in and started screaming at the security guy for not letting them leave the fair as fast as she wanted.
So I yelled at her *We all wanna leave get back in your damn car!* and then the security guy let us drive out first.![]()
hahahaGotta love a county fair
Quote by Mondobubba:
So, Mala, all up Maryland people are crazy? At least we didn't rebel against Abraham Lincoln being elected president like another state I could mention.
Quote by wickedpam:Quote by Mondobubba:
So, Mala, all up Maryland people are crazy? At least we didn't rebel against Abraham Lincoln being elected president like another state I could mention.
All I know is that every time I'm cut off, tailgated or road raged in traffic the license plate usually turns out to be from MD although recently DC is giving them a run for their money.
Wait I thought you were from VA? And I still think NoVA would snap off if they could
Quote by Mondobubba:Quote by wickedpam:Quote by Mondobubba:
So, Mala, all up Maryland people are crazy? At least we didn't rebel against Abraham Lincoln being elected president like another state I could mention.
All I know is that every time I'm cut off, tailgated or road raged in traffic the license plate usually turns out to be from MD although recently DC is giving them a run for their money.
Wait I thought you were from VA? And I still think NoVA would snap off if they could
No, I was born in DC, raised in glorious MoCo. When I met Mrs Mondo, we lived in NoVa.
Quote by wickedpam:
You'd think that S&P would have lost any credibility with all this swirling around it
Quote by Raine:Quote by wickedpam:
You'd think that S&P would have lost any credibility with all this swirling around it
I think it has.
What I find incredibly interesting is that the DoJ began it's investigation BEFORE the downgrade.
There is something going on here.
Dozens of Securities and Exchange Commission staffers used government computers to access and download explicit images and many of the incidents have occurred since the global financial meltdown began, according to a new watchdog investigation.
The SEC inspector general conducted 33 probes of employees, 31 of which occurred in the last two and a half years, according to a summary of the cases requested by Sen. Charles E. Grassley (R-Iowa) that first surfaced Thursday evening.
Several of employees held senior positions, earning between $99,300 and $222,418 per year, the inspector general's summary said. Three of the incidents occurred this year, ten in 2009, 16 in 2008, two in 2007 and one each in 2006 and 2005.
In one instance, a regional office staff account admitted viewing pornography on his office computer and on his SEC-issued laptop while on official government travel. Another staff account received nearly 1,800 access denials for pornography Web sites in a two-week period and had more than 600 images saved on her laptop’s hard drive, the report said.
A senior attorney at SEC headquarters in Washington admitted he sometimes spent as much as eight hours viewing pornography from his office computer, according to the report. The attorney’s computer ran out of space for the downloaded images, so he started storing them on CDs and DVDs that he stored in his office.
Rep. Darrell Issa (R-Calif.), ranking Republican on the House Oversight and Government Reform Committee, said it was “nothing short of disturbing that high-ranking officials within the SEC were spending more time looking at pornography than taking action to help stave off the events that brought our nation's economy to the brink of collapse."
Quote by wickedpam:Quote by Raine:Quote by wickedpam:
You'd think that S&P would have lost any credibility with all this swirling around it
I think it has.
What I find incredibly interesting is that the DoJ began it's investigation BEFORE the downgrade.
There is something going on here.
you think its tit for tat? DoJ investigates them, they downgrade us?
Rep. Darrell Issa (R-Calif.), ranking Republican on the House Oversight and Government Reform Committee, said it was “nothing short of disturbing that high-ranking officials within the SEC were spending more time looking at pornography than taking action to help stave off the events that brought our nation's economy to the brink of collapse."
Quote by Raine:No I don;t think they were aware they were being investigated.Quote by wickedpam:Quote by Raine:Quote by wickedpam:
You'd think that S&P would have lost any credibility with all this swirling around it
I think it has.
What I find incredibly interesting is that the DoJ began it's investigation BEFORE the downgrade.
There is something going on here.
you think its tit for tat? DoJ investigates them, they downgrade us?
Sadly -- no one ever knows what the DoJ is doing....
Quote by wickedpam:Quote by Raine:No I don;t think they were aware they were being investigated.Quote by wickedpam:Quote by Raine:Quote by wickedpam:
You'd think that S&P would have lost any credibility with all this swirling around it
I think it has.
What I find incredibly interesting is that the DoJ began it's investigation BEFORE the downgrade.
There is something going on here.
you think its tit for tat? DoJ investigates them, they downgrade us?
Sadly -- no one ever knows what the DoJ is doing....
I can't believe they didn't know on any level, no gov't agency is that tight lipped
Quote by TriSec:
Mmm, I just happened to go by the Dow Jones tracker at CNN Money.
< eyes pop out of head >
What the hell is going on around here today?
But then again, like I've been saying all along...."Good. I hope the GOP runs the country into the ground, because that's what it's going to take."
Doesn't make it any less scary, though.
Quote by wickedpam:
Did Thom read the blog?
Quote by velveeta jones:
Hmmmmm, Lady Grey.![]()
Quote by wickedpam:
AC/DC wine? hhhmmmm.....
Quote by Raine:Quote by wickedpam:
Did Thom read the blog?
Was he talking about the same thing?
I walked away for a moment.
Quote by Raine:Quote by wickedpam:
AC/DC wine? hhhmmmm.....
I think I want some!
Quote by wickedpam:Quote by Raine:Quote by wickedpam:
AC/DC wine? hhhmmmm.....
I think I want some!
bet its only going to be sold over the internet - we tried to sell the Grateful Dead wine that didnt' go over so well
Quote by livingonli:
Good day folks. Best wishes to Mondo for his dad and TriSec. It seems like a lot of people (some of us more than others) on this blog keep getting stuck with bad luck.
And on the other side, I got DirecTV back up in the old household since I took advantage of the free Sunday Ticket offer. Although right now I am watching Doctor Who on BBC America (glad to have that channel back).
Quote by livingonli:Quote by wickedpam:Quote by Raine:Quote by wickedpam:
AC/DC wine? hhhmmmm.....
I think I want some!
bet its only going to be sold over the internet - we tried to sell the Grateful Dead wine that didnt' go over so well
I would figure that AC/DC fans are either beer or hard liquor drinkers.
Quote by wickedpam:Quote by Raine:Quote by wickedpam:
Did Thom read the blog?
Was he talking about the same thing?
I walked away for a moment.
Yep.
Quote by Raine:well keep in mind -- We are friends with his associate producer...Quote by wickedpam:Quote by Raine:Quote by wickedpam:
Did Thom read the blog?
Was he talking about the same thing?
I walked away for a moment.
Yep.it is a possibility.
Quote by wickedpam:Quote by livingonli:
Good day folks. Best wishes to Mondo for his dad and TriSec. It seems like a lot of people (some of us more than others) on this blog keep getting stuck with bad luck.
And on the other side, I got DirecTV back up in the old household since I took advantage of the free Sunday Ticket offer. Although right now I am watching Doctor Who on BBC America (glad to have that channel back).
which Doctor?
Quote by livingonli:Quote by wickedpam:Quote by livingonli:
Good day folks. Best wishes to Mondo for his dad and TriSec. It seems like a lot of people (some of us more than others) on this blog keep getting stuck with bad luck.
And on the other side, I got DirecTV back up in the old household since I took advantage of the free Sunday Ticket offer. Although right now I am watching Doctor Who on BBC America (glad to have that channel back).
which Doctor?
Tennant. They are running "Daleks in Manhattan" right now.
Quote by wickedpam:Quote by livingonli:Quote by wickedpam:Quote by livingonli:
Good day folks. Best wishes to Mondo for his dad and TriSec. It seems like a lot of people (some of us more than others) on this blog keep getting stuck with bad luck.
And on the other side, I got DirecTV back up in the old household since I took advantage of the free Sunday Ticket offer. Although right now I am watching Doctor Who on BBC America (glad to have that channel back).
which Doctor?
Tennant. They are running "Daleks in Manhattan" right now.
ahh - I still like 9th better![]()
Quote by Mondobubba:
:eyes glaze over with Dr Who discuss: :tries finding stick to poke self with to wake up:
Quote by TriSec:
Bond rating minutae on yesterday's Fresh Aire....< becomes comatose >
But I did glean one interesting piece of information...did we know this?
Prior to the mid 1970s, investors used to pay for the rating information. Around that time, the regulations changed and the bond issuers started to pay for the ratings. As in, how much does a AAA rating cost?
The story went on to note all the companies that had favorable ratings the day before they tanked...including Enron, AIG, and Orange County (CA).