Word: sec
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Dates: during 2000-2009
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...However, Jim Rickards, a senior managing partner at Omnis Inc. and a former general counsel for Long Term Capital Management who helped negotiate a federal bailout for the failed hedge fund in 1998, isn't so sure the report's findings will be enough to make the SEC liable...
...hurdle under the statute is so high - they have to show that there was an SEC rule that required them to go forward," he says. "They may have missed a lot of clues and the people were not diligent in following up on leads, but none of that shows they violated an internal rule because there's always discretion...
...SEC gets many tips, good and bad, and can't be expected to follow up on every single one, Rickards contends. "They get tips all the time - some of them are invented, some of them are malicious, some of them are people who are out to destroy other people, and they try to use the SEC as the enforcement agency," he says. "So they don't act on all of it. That's where the discretion comes in, and that's why in my view the suit will fall down...
...extremely unlikely" the SEC will be held liable, Rickards says...
...that Madoff did at that time, the human condition is such that it might be hard for somebody to start investigating or shooting at someone of his stature [knowing that] if they're wrong, their career and others may suffer," says Schindler. Whether a federal court will hold the SEC accountable for the "human failings of one or more personnel" is the question, he says. If it does, though, he says the ruling would open the floodgates for people to make claims in every Ponzi scheme...