Uh oh. Another scandal on Wall Street. The New York Times writes that the Inspector General of the SEC has uncovered a $560 million leasing fraud involving “‘deeply flawed and unsound analysis’…without competitive bids and using backdated approval forms.” The Times further reports:
Part of the supporting documentation justifying the signing of a lease without competition was falsified, the inspector general found. A “justification and approval report” was not completed until a month after the lease was signed, but documents were pre-signed or altered to make it appear that the leasing authority was in place, the report said.
So — who are these scoundrels?
The actions “represent another in a long history of missteps and misguided leasing decisions made by the S.E.C. since it was granted independent leasing authority by Congress in 1990,” H. David Kotz, the S.E.C. inspector general, wrote in the report.
Oops. The SEC? That’s right. The very same folks who are now busy expanding their staff a zillionfold to police those Wall Street rascals have been caught forging documents, falsifying records and generally behaving like a bunch of Ponzi pirates, because — well, because they’re the good guys, so I guess that makes it all right. Those rules were made for criminals, after all, not law-abiding regulators.
Quis costodiet custodies ipsos? How can a deformed regulator reform finance? Congressman Frank? Senator Levin? Any comment?