SEC Gave "Preferential Treatment" to Wall Street CEO

[David Farber <dave () farber net>]

Begin forwarded message:

From: "lynn" <lynn () ecgincc com>
Date: October 8, 2008 8:48:26 AM EDT
To: dave () farber net
Subject: Report: SEC Gave "Preferential Treatment" to Wall Street CEO


http://abcnews.go.com/Blotter/story?id=5970263&page=1

Report: SEC Gave "Preferential Treatment" to Wall Street CEO

The SEC gave "preferential treatment" to Wall Street executive John Mack
during an insider trading investigation three years ago because Mack was
about to become CEO of the Morgan Stanley investment banking firm, the
SEC's inspector general concluded in a report obtained by ABC News.
Many say the Securities and Exchange Commission didn't enforce Wall  
Street
Laws.

The report recommended disciplinary action against the SEC's chief of
enforcement, Linda Thomson, and said the firing of an SEC lawyer was
"connected" to his persistent attempts to take Mack's testimony. Read  
the
report's conclusion and recommendations here.

"There's a culture at the SEC that they're not willing to take on the  
big
boys, whether big economically or big politically," said Sen. Charles
Grassley (R-IA) who requested the inspector general's investigation.

It is a damning indictment of the SEC at a time when it is being asked  
to
step up its enforcement action against Wall Street.
Related
FBI, SEC, Federal Reserve 'Failed to Connect the Dots' to Wall Street
WATCH: Warning Signs at Lehman?

"They ought to be able to challenge anybody regardless of their economic
might or regardless of their political might," said Sen. Grassley.

Grassley asked for the investigation after a SEC lawyer who sought to  
take
Mack's testimony, Gary Aguirre, was fired.
snip





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