For Immediate Release: Wednesday, September 2, 2009
Contact: Oversight and Government Reform Press Office, (202) 225-5051

Chairman Towns Announces Investigation into SEC Enforcement Personnel Policies

Washington, DC – U.S. Rep. Edolphus “Ed” Towns (D-NY), Chairman of the House Committee on Oversight and Government Reform, today wrote SEC Chairman Mary Schapiro, requesting additional information about the experience and capacity of the agency’s enforcement personnel, whom the SEC Inspector General blamed for failing to uncover Bernard Madoff’s Ponzi scheme.

“This report highlights Congress’ longstanding concern that federal financial regulators need more experienced and sophisticated professionals to police Wall Street,” Chairman Towns said. “Despite a 2002 law that gave the SEC special pay authority to recruit a more experienced enforcement staff, the report makes repeated reference to the inexperience of the staff assigned to the investigations, and states that key SEC personnel on these examinations had “recently graduated from law school” or had “joined the SEC as his first job out of school.”

The Chairman states in the letter that he expects to hold hearings on this topic in the near future and concludes by asking for specific information, regarding the experience and qualifications of current SEC enforcement personnel.

“The IG Report catalogues a shameful series of incomprehensible oversights, delays, and failures to follow-up, as well as a shocking lack of internal coordination and inaction in the face of clear malfeasance,” said Chairman Towns.

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