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SEC’s Robert Khuzami: “All Individuals Will Be Held Accountable…”

Posted by Larry Doyle on December 18, 2011 7:35 PM |

What do we think of the SEC’s attempt to pursue former Freddie and Fannie CEOs Richard Syron and Daniel Mudd?

Is this a fully legitimate pursuit of justice against these executives? Could there be more than a whiff of political motivation on the part of the current administration buried in this pursuit?

As The New York Times reports the other day, SEC Accuses Fannie and Freddie Ex-Chiefs of Deception:

On Friday, S.E.C. officials trumpeted their actions in the Fannie and Freddie case as part of a renewed effort to crack down on wrongdoing at the highest levels of Wall Street and corporate America………..

Is that right? A renewed effort, you say? Is that an admission that the effort for the last few years has been lacking? SEC Enforcement Chief Robert Khuzami weighs in:

“All individuals, regardless of their rank or position, will be held accountable for perpetuating half-truths or misrepresentations about matters materially important to the interest of our country’s investors,” said Robert S. Khuzami, the agency’s enforcement chief. “Investors were robbed of the opportunity to make informed investment decisions.”

Hey now!! Is that right??!!

All individuals??……Regardless of rank or position??…..Held accountable??….Half-truths or misrepresentations??

Well, now, let’s help this fella out a little. Assuming there is a degree of integrity in his statement, whom would we propose that Khuzami take a serious look at in assessing whether these said individuals engaged in half-truths and misrepresentations which robbed investors of the opportunity to make those informed decisions?

If the SEC is going after Syron and Mudd, I would maintain that there are a number of layup investigations which Khuzami and team should undertake. Like who?

I would certainly recommend Khuzami and his cohorts go back and reopen an investigation of former Fannie CEO Franklin Raines and his sidekicks James Johnson and Tim Howard. I made this recommendation in April 2010 when I wrote, Forget Daniel Mudd. Let’s Cross Examine Franklin Raines, Tim Howard, and James Johnson.

While they are at it, they would certainly want to look further into Freddie’s former top dog Leland Brendsel.

Whom else might Khuzami want to revisit?

Treasury’s Tim Geithner and former Treasury Secretary Hank Paulson?

Goldman Sachs’ Lloyd Blankfein?

AIG’s Hank Greenberg?

Bank of America’s Ken Lewis and Brian Moynihan?

Citigroup’s Chuck Prince and Vikram Pandit?

Lehman’s Richard Fuld?

Merrill Lynch’s Stanley O’ Neal and John Thain?

Countrywide’s Angelo Mozilo…again, of course!

Current SEC chair and former FINRA head Mary Schapiro? Would Khuzami entertain an inquisition of his own boss? Come on, Robert! We’ve got your back on this one!

In light of the current situation, we would certainly have to enter Jon Corzine into the mix, correct??

Whom else should we propose?

I will throw this out to the readers. Under the guidelines highlighted above and put forth by none other than the current SEC Enforcement Chief Robert Khuzami, whom else would you like to see our SEC legal eagles shine the light on?

Let’s perform our civic duty as American citizens and leave no stone unturned here. Let’s keep the politics out of it. I mean, there isn’t a chance that the current pursuit of Syron and Mudd might be political now is there? Is there?

Who’s next?

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets, our economy, and our political realm so that meaningful investor confidence and investor protection can be achieved.

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