Does "self-regulation" not work on Wall Street?

LolliaBlack

New member
What are your thoughts on this quote about the Financial Industry?

"People in glass houses don't throw stones. Self-regulation in Wall Street doesn't work" - Harry Markopolos (Madoff whistleblower) when asked why didn't leading banks on Wall Street that knew Madoff was a crook report him to the SEC - instead, they simply chose not to do business with him.
I kind of agree, Mad Max. I heard this quote on the interview he did last year on 60 minutes and that was the only statement he made that stuck. He's a numbers guy, though, just not a quant. He also acted in self-interest... Reporting insider trading comes with a large reward. He never got that, of course.

And well, according to Markopolos, lots of people suspected Madoff's scam.

http://www.youtube.com/watch?v=s68FR1MXT8Q&feature=fvsr
A nobody, do you work on "the street"?
Markopolos makes the same point about the SEC being mostly unqualified (or paid off?). However, self-regulation doesn't always work, hence Enron, Worldcom, et al. Insider trading runs rampant on Wall Street, too. There are certainly not enough whistleblowers.
"The market is broken."
 
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