Description: The Securities and Exchange Commission may create a “fraud college” to train staff in detecting market abuses after the agency failed to stop Bernard Madoff’s $65 billion Ponzi scheme, Chairman Mary Schapiro said.

Source: Bloomberg.com

Date: 9/03/2009

Keys: SEC, stock market, fraud

Link:  http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aO6As7nsq.wo

Questions for discussion:

• Do you think this effort will help prevent abuse?
• How would you police fraud in financial services? Explain your thinking?
• To deter fraud, would you encourage imprisonment or financial punishment for criminal wrongdoing? Explain your thinking.
• What would your approach be for dealing with someone like Bernard Madoff?