Child Please!

These are headlines from yesterdays news about the SEC and the way they handled Madoff.

01:30PM SEC INSPECTOR GENERAL FINDS AGENCY FUMBLED 5 PROBES OF MADOFF - REPORT SUMMARY

01:30PM REPORT SAYS "THROUGH AND COMPETENT" REVIEWS OF MADOFF NEVER PERFORMED

01:30PM REPORT SAYS SEC "CAUGHT MADOFF IN LIES AND MISREPRESENTATIONS" BUT DIDN'T FOLLOW U

01:30PM SEC WAS "CONFUSED'' ABOUT SOME ASPECTS OF MADOFF OPERATIONS -- REPORT

01:30PM SEC GOT DETAILED COMPLAINT FROM HEDGE FUND MANAGER IN 2003 THAT COULD HAVE UNCOVERED MADOFF -REPORT

01:31PM MADOFF'S INCOMPLETE RESPONSES TO SEC'S DOCUMENT REQUESTS "SHOULD HAVE RAISED SUSPICIONS" - REPORT

01:31PM MADOFF'S ACCOUNT STATEMENTS INCLUDED ONLY AVG DAILY PRICES, NO ACTUAL TRANSACTION PRICES - REPORT

01:31PM SEC EXAMINERS HESITATED TO DEMAND AUDIT TRAIL DATA BECAUSE SO TIME-CONSUMING TO REVIEW - REPORT

01:31PM REPORT CITES 2004 EMAIL'S STEP-BY-STEP ANALYSIS SHOWING MADOFF MUST BE MISREPRESENTING OPTION TRADES

01:31PM SEC EXAMINERS ASKED MADOFF ABOUT OPTIONS TRADING;STOPPED LOOKING WHEN HE SAID HE NO LONGER USED THEM

01:43PM SEC STAFF "CONFUSED," DIDN'T UNDERSTAND MADOFF'S PURPORTED TRADING STRATEGY, CUSTODY OF ASSETS-REPORT

01:43PM EXAMINERS FAILED TO CONSULT SEC'S INTERNAL EXPERTS, INT'L AFFAIRS OFFICE ABOUT MADOFF'S FOREIGN BUSINESS

01:43PM PROBE LED AT ONE TIME BY SEC ATTORNEY WITH LESS THAN 2 YRS EXPERIENCE - REPORT

01:45PM SEC "NEVER TRULY ANALYZED" PONZI SCHEME SCENARIO AS PART OF MADOFF PROBE - REPORT

01:47PM SEC BRANCH CHIEF "TOOK AN INSTANT DISLIKE" TO WHISTLEBLOWER HARRY MARKOPOLOS, REBUFFED HIS TIP ON MADOFF - REPORT

SEC CHAIRMAN COX WAS TIPPED IN MARCH 2008 THAT MADOFF KEPT 2 SETS OF RECORDS - REPORT

What this really means in Mary Shapiro's eyes is the following:

We will continue to do a bad job of enforcing the laws, or even follow them in many cases, especially with regards to our future employers. We regretfully apologize for not biting the hand that ultimately feeds us. We make up for our incompetence by fining publicly traded TARP owned companies $33MM, when they have stolen $5.9B as in the case of BOFA, because we know the money is coming from the poor saps that make up the electorate.

We are truly all in this together.

Warm Regards-

Mary Shapiro

Commissioner SEC

CC:

Lloyd Blankfein
Jamie Dimon
Kenneth Lewis
John Thain