SEC Fails to Reform after Madoff

In May, SEC Chairwoman Mary Schapiro said she wanted to spring surprise inspections on almost 10,000 money managers to make sure they weren’t following in Bernard Madoff’s footsteps. On December 16, she settled on a rule that requires about 1,600 U.S. fund managers to comply with unannounced audits. What happened to the other 8,400? “The revision came after lobbying by fund companies,” according to Bloomberg. It’s the fourth rule that Schapiro has announced and then had to scale back or delay.