SEC pledges overhaul. That’s a first step.

From the NYT:

Top officials at the Securities and Exchange Commission pledged at a Senate hearing on Thursday to fix the problems that led to the agency’s failure to detect the multibillion-dollar fraud conducted for more than a decade by Bernard L. Madoff.

Robert Khuzami, the head of the S.E.C.’s enforcement division, who joined the agency in March, said he has started the most extensive reorganization of his division in at least 30 years.

“We intend to learn every lesson we can,” he said. “There are no sacred cows.”

It’s always a first step to have the intention.  But that probably only makes 1/100 or so of the whole story.  The toughest part, as always, is to see proof that changes are indeed happening.  Regardless of the kind of overhaul planned, it’s hard to sit confidently and wait.  You shuffle people within the organization; you hire from the outside.  You don’t see true competence until the organization (or some selected people from it) are in fact able to uncover fraudulent dealings.


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