Last week's congressional hearing on the Madoff scandal made for great theater. Harry Markopolos is the guy who tipped off the SEC 9 years ago (and a number of times subsequently) about the strong likelihood that Madoff was a fraud. His testimony was jaw-dropping. I hadn't realized just how detailed his evidence had been or how persistent he had been in making his case. I particularly loved how he stressed that it took mere minutes to figure out that something was amiss with Madoff and his purported performance. Harry also did a wonderful job of pointing out the amazing breadth and depth of ineptitude at the SEC. I'd encourage you to watch a recording of his testimony.
In the clip below, Representative Ackerman takes a nice swing at the sacrificial SEC lambs who drew the short straw and had to attend the hearing. As I pointed out when this scandal first broke, the ironic ultimate outcome of this incredible failing at the SEC will most likely be a significant boost in the SEC's budget. Nothing warrants increased government funding more than colossal failure!
Link to Video
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