
SEC inspections head resigns
Daily news headlines
WASHINGTON, DC - The head of inspections at the Securities and Exchange Commission (SEC) has resigned from her role at the US regulator.
Lori Richards led the Office of Compliance Inspections and Examinations (OCIE) at the regulator that conducted at least three ineffectual investigations between 1999 and 2006 into Bernard Madoff's $65 billion Ponzi scheme, which masqueraded as an elite hedge fund.
Richards' departure is the Madoff investment scandal's latest scalp, after the fraudster himself was sentenced to 150 years in prison on June 29 for scamming thousands of investor victims - ranging from banks, private investors and hedge funds, to charities - out of $64.8 billion, according to prosecutors.
Her departure marks one of the final departures of the old guard leading the regulator under former SEC chairman Christopher Cox, replaced with Mary Schapiro on January 22 by the incoming administration of president Barack Obama.
The SEC has come under intense pressure for its failings over the Madoff scandal, including speculation that last month's regulatory reformation could have signalled its dissolution - something the Obama administration has baulked at doing - while the SEC has positioned itself as the responsible supervisor for the US debate on reform of financial compensation structures.
An SEC statement credits Richards with reforming a range of compliance issues, including abusive exchange trading, insider trading, credit rating agencies practices and disclosures, pension consultants' conflicts of interest, asset valuation problems and abusive practices.
"Lori is known widely for her passionate and tireless service to the agency," said Schapiro. "I've had the honour and privilege of knowing and working with Lori for many years, and have always appreciated her dedication, leadership and integrity. I respect her decision to leave the SEC and am grateful for her many years of public service."
Richards will depart her role as director officially on August 7, with OCIE associate director-chief counsel John Walsh taking the helm as acting director.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Market blocked in by volume caps on European DLT regime
Limited scope of pilot project risks holding back issuer and depository participation
SVB opens floodgates on liquidity buffers debate
European regulator says HQLAs should be booked at fair value, but not everyone agrees
SEC cyber rules risk creating web of confusion and costs
Proposals would require breach notifications, public disclosures and annual cyber assessments
Indonesia readies close-out netting after passing P2SK Law
Bankruptcy law changes remove close-out netting obstacles
Top 10 operational risks: The umpire strikes back
Tougher regulatory enforcement, new consumer rules and rise of ESG are ringing alarm bells
Behnam comments fan JSCC hopes for US client clearing
Japan clearing exec welcomes CFTC chair’s pledge to keep discussing OTC clearing status for non-US houses
SVB wouldn’t happen in Europe, says Deutsche CIB head
Campelli also thinks Credit Suisse’s bailed-in AT1 bonds acted as originally intended