This article is mainly about the Madoff mess, but if you had hope of a clean-up, see below.
Conclusion below; whole thing here: http://www.counterpunch.org/lendman12262008.html
SEC's enforcement division has been hampered by Bush administration budget cuts and regulatory changes making it harder to impose penalties, even in cases of egregious wrongdoing. Other problems also exist, including accusations that its employees engage in illegal insider trading and falsify financial disclosure forms. And there were "repeated instances of the failure by officials to pursue investigations."
Experts accused the Bush administration of hollowing out the commission, hobbling its enforcement and inspection efforts, and according to leading authority on SEC history, Joel Seligman, weakened the agency's ability and commitment to deter fraud.
Mary Schapiro will head the SEC for Obama. Under her stewardship, sharks on the Street will flourish. Business as usual will continue. She spent years advocating for Wall Street to be self-regulating, currently heads the Financial Industry Regulatory Authority (FINRA), was president and is now chairman and CEO of the National Association of Securities Dealers (NASD), is a former SEC commissioner, ran the Commodity Futures Trading Commission, and is expert at quashing investigations about fraud. Whether she'll roust any in her new post is problematic and doubtful as she likely was appointed to allow it. She's a consummate insider, considered safe, and no wonder Wall Street and the dominant media applauded her selection. That alone is the tip-off.
On her watch (beyond lip service), expect less enforcement, not more, and why so is simple. Eventually she'll return to the private sector to be well compensated for services rendered. Besides, there's no doubt where her interests lie, which ones she'll represent, and that's why she was chosen in the first place. Wall Street is in good hands with Mary Schapiro.
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