Rep. Paul Kanjorski, D-Pa., the influential chairman of the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, wants some answers from the Securities and Exchange Commission as to why the agency failed to detect the $65 billion Bernard Madoff Ponzi scheme, and he wants them in the next two weeks.
In a letter sent to the SEC on Monday, Kanjorski, implored the SEC's Inspector General H. David Kotz to immediately issue an update on the Madoff investigation.
Kanjorski wrote in his letter:
"In your written testimony at the meeting of the Financial Services Committee in early January, you noted that the Office of Inspector General at the U.S. Securities and Exchange Commission opened an official investigation into the Madoff matter on December 17, 2008. You also said that you understood 'that it is critical that our investigative efforts be conducted expeditiously.
"Six months have now passed since you began your investigations into the $65 billion Madoff Ponzi scheme. In addition, more than five months have ensued since you testified and made public commitments regarding these matters."
He told Kotz that the only update on the Madoff investigation was a "one-page summary" in Kotz's recent semiannual report to Congress detailing the activities of his office. "While this brief discussion provided some helpful insights, I found it an inadequate response to my earlier requests and your prior public commitments," Kanjorski said. "The time has come for you to act."
Kanjorski added that he is working on developing new legislation for the securities industry and needs the information. He called on Kotz to provide an update on the investigation no later than June 30. - Donna Block
See Kanjowski's letter
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