From: Subject: GalleryWatch.com Date: Thu, 18 Dec 2008 08:48:11 -0500 MIME-Version: 1.0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Content-Location: http://us.gallerywatch.com/pipefile.asp?type=pdf&sid=AGDOC:36699:docs%2Fnews%2FUS%2Fagdocs%2F36699%5Frankbachusmadoff%2Ehtml X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.5579 GalleryWatch.com  December 17, = 2008   The Honorable Barney=20 Frank
ChairmanCommittee on Financial = Services
U.S. House of=20 Representatives
2129 Rayburn House = Office=20 Building
Washington, DC = 20515 Dear Chairman = Frank: Last week's startling=20 revelations about the alleged $50 billion "giantPonzi scheme" = orchestrated by=20 Bernard Madoff, a prominent member of thesecurities industry = for more=20 than 45 years, exposes serious shortcomingsin securities = regulation and=20 oversight that require the Committee'simmediate attention.=20  
 The Securities and = Exchange=20 Commission (SEC) and the Financial IndustryRegulatory Authority = (FINRA)=20 were reportedly unaware of Mr. Madoff'sdeceptions, which only = came to=20 light after Mr. Madoff revealed thescheme to two of his = senior=20 employees last week. This episode raisesserious questions = about the=20 SEC's ability to fulfill its mission toprotect investors and = abide by=20 its motto to be the "investor'sadvocate," and prompts = concerns=20 about the capabilities ofself-regulatory = organizations to=20 supplement government oversight.  Everyday brings more news = of the=20 devastating impact of this alleged fraud oncharities, private = foundations,=20 banks, broker-dealers and governmententities as well as = individual=20 and corporate investors.   Accordingly, I am = writing to=20 request that the Committee hold hearings,as soon as practicable = in the=20 111th Congress, to thoroughly investigateMr. Madoff's conduct = and the=20 broader implications for securities marketoversight and = enforcement. =20 These hearings should specifically examinethe adequacy of the = SEC's and=20 FINRA's examination programs, as well asthe compliance program = at Mr.=20 Madoff's firm, and should includetestimony from Mr. = Madoff, the=20 SEC, FINRA, the Securities InvestorProtection = Corporation, Mr.=20 Madoff's accounting firm and his victims.  Thank you for the = consideration=20 of my request.
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  Sincerely,    Spencer = Bachus Ranking = Member   =