Top regulators to testify at Madoff hearings

27 January 2009

A number of top-level securities regulators will be called to testify before a Congressional committee hearing later today (January 27th) into the alleged $50 billion fraud conducted by Bernard Madoff, it has been announced.

In a statement, the Senate banking committee said it would take evidence from the Securities and Exchange Commission's (SEC) head of enforcement Linda Thomsen, its director of compliance, inspections and examinations Lori Richards and the interim chief executive of industry-run watchdog the Financial Industry Regulatory Authority (Finra), Stephen Luparello.

Stephen Harbeck, the president and CEO of the organization overseeing the liquidation of Mr Madoff's investment firm, the Securities Investor Protection Corporation, will also appear.

According to Reuters, both the SEC and Finra have already received flak for their respective roles in failing to spot the alleged fraud - although ex-Finra chief executive Mary Schapiro said the industry body did not have the authority to examine Mr Madoff's business. Ms Schapiro is now the incoming chairman of the SEC.

The news agency notes that today's hearings, which are due to start in Washington DC at 10:00 EST, will be the first time that lawmakers have questioned top US regulators on the scandal.

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