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NY Times - S.E.C. Files Were Illegally Destroyed, Lawyer Says

By EDWARD WYATT
Published: August 17, 2011

WASHINGTON — An enforcement lawyer at the Securities and Exchange Commission says that the agency illegally destroyed files and documents related to thousands of early-stage investigations over the last 20 years, according to information released Wednesday by Congressional investigators.

The destroyed files comprise records of at least 9,000 preliminary inquiries into matters involving notorious individuals like Bernard L. Madoff, as well as several major Wall Street firms that later were the subject of scrutiny after the 2008 financial crisis, including Goldman Sachs, Lehman Brothers, Citigroup and Bank of America.

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http://www.nytimes.com/2011/08/18/business/sec-illegally-des...

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Perhaps an example

of what Reggie Middleton calls regulatory capture.
http://en.wikipedia.org/wiki/Regulatory_capture

A revolving door of players between government and finance perpetuating and subsequently covering up fraud clearly exists.

http://www.rawstory.com/rs/2011/08/17/sen-grassley-sec-may-h...
"In at least one case, according to Flynn, investigators at the SEC found their desire to investigate an influential bank thwarted by senior officials in the enforcement division -- whose director turned around and accepted a lucrative job from the very same bank."

The PTB decided

that the SEC should take the fall for destroying documents, instead of the Wall St banks taking the hit for the largest fraud scam in the history of the world.
The SEC taking the fall was the "firewall" action to keep the prosecution out of the bankers.

I think enough heat should be put on the SEC people until they spill the beans and agree to testify against the Wall St bankers to save their own skins.

Sorry y'all,

had to bump this.