Congress will also investigate the alleged $50 billion pyramid scheme run by Wall Street money manager Bernard Madoff.
Democratic Representative Paul Kanjorski (D-PA), chairman of the House Financial Services subcommittee on capital markets, will convene a congressional inquiry early next month to examine the alleged fraud and to determine why the Securities and Exchange Commission and other regulators “failed to detect these substantial evasions.”
The planned congressional inquiry follows a stunning rebuke that SEC Chairman Christopher Cox leveled against his agency’s career regulators, blaming them for a decade-long failure to investigate Madoff and for failing to detect one of the largest pyramid scams ever.
In other news, New York Southern District Magistrate Judge Gabriel Gorenstein has set new conditions for Madoff’s bail, including an ankle-monitoring bracelet and a curfew that will require him to be in his Park Avenue apartment from 7 pm to 9 am. The magistrate judge also ordered Madoff and his wife, Ruth, to surrender their passports.