First, there is the letter to Chairman Cox, mentioning the individuals who participated in what appears to be a massive cover-up, for a hedge fund with tremendous power and wealth.
It describes how a regulator takes a blind eye to illegal stock manipulation/insider trading - if it is a favored son and political powerhouse.
Here's the letter.
Then there is the document that was sent to Congress, which describes the same ugly situation. Special shout out to Mark Faulk of the Faulking Truth for finding the bandwidth to post this.
This is a damningly comprehensive indictment of our entire securities regulatory system, and a must read for all.
Disturbingly, so far we have seen no action, causing some to ask whether the Senate Banking Committee is just another aspect of the corruption problem. Is that unfair, or unduly harsh? Depends.
Upon whether you were fired from your position at the SEC because you were working to unravel a massive illegal enterprise, or you are an investor who lost his savings due to these sorts of abuses - or you are a powerful hedge fund, or one of its political flunkies/captive regulators/protectors.
I suppose that is one way to chart the line of demarcation, based upon what this letter describes.
The S&L scandal broke this way as well - and it became obvious that the intersection of huge money and our system had corrupted the machine beyond any recognition. BCCI also underscored how the Beltway and Wall Street and big money make for unpleasant trysts - where the investors, or "rubes", as the taxpayers who foot the bill for these scams, are referred to in private.
How can the SEC be trusted to do anything but carry the briefcases of their prospective employers on Wall Street? My sense, confirmed by these stunning documents, is they can't be. Now, that is not to tar and feather the entire group, but it is pretty obvious, when one considers these charges, as well as the SEC's track record of pardoning naked short selling by grandfathering, and their sudden shutdown of the journalist subpoenas.....
Let's just say the resultant conclusions ain't pretty.
I wonder how long it will be before the NY financial press starts the slander campaign against this whistleblower? Can't wait for the charges he is a pedophile, or a junky, or a crook, start to surface. Isn't that how it works? Tar the messenger and make it about his uglies, to take the mind off the message? I'm predicting it here, first. Write it down.
On another related note, the wording of the Senate Judiciary hearing has changed slightly, from "Hedge funds, independent analysts, and short selling", to "Hedge Funds and Independent Analysts: How Independent are Their Relationships?" Notice anything missing? Uh, that would be the short selling part.
I wonder if that is intentional, and reflects a lot of behind the scenes lobbying, or if it is just a turn of phrase?
We won't have long to wait to find out.
I remain pragmatically optimistic.
But this latest bombshell about the SEC doesn't afford a lot of hope - it's like hearing that the local sheriff is escorting gang members on their drug runs, ensuring that they don't run into trouble.
Exactly how bad does this have to get before the mainstream figures out that we have the crisis of the century on our hands?