Description: A recent report by Securities and Exchange Commission’s inspector general shows that the investigation of Bernard L. Madoff was not the only one to go badly awry. While the impact of the S.E.C.’s missteps were not nearly as significant as in the Madoff case, the report shows that the agency’s enforcement division allowed itself to be manipulated by a company it should have been investigating more thoroughly while allowing former staff members to influence its decisions on how to proceed.

Source: NYTimes.com

Date: 03/24/2010

Link: http://dealbook.blogs.nytimes.com/2010/03/24/how-not-to-run-an-s-e-c-investigation/?ref=business

Questions for discussion:

• How do you view the arguments presented by Peter Henning in his report?
• Do you feel the S.E.C. should have behaved differently at any point?