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Archive for February 20th, 2009

The Fall Girl

The Fall Girl

Linda Chatman Thomsen recently resigned as the Director of the Division of Enforcement for the U.S. Securities and Exchange Commission, a kind of “Sheriff of Wall Street.”  She worked her way up in the division, carving notches in her gun for her part in the Enron and Martha Stewart cases. Wall Street complained Thomsen was too hard on business, which to me means she must have been doing her job. When she first took the job as director, then SEC Chairman Donaldson said – 

I am pleased that Linda has agreed to take on this new role at the Commission. Linda is a highly accomplished attorney with a proven record of effective advocacy on behalf of the nation’s investors. The skills Linda has exhibited during her tenure at the Commission instill great confidence in her ability to lead this important division.”

Thomsen is out now, largely because she didn’t pay attention to a private citizen named Harry Markopolos when he said Bernie Madoff was running the world’s largest unregistered hedge fund. I think this is another way of saying “Ponzi scheme.” Of course, no one else at the SEC (or Congress) paid any attention to Markopolos either. That is until the the defecation came in contact with the rotating oscillator, which is another way of say the sh** hit the fan. When greedy rich people lost money invested in Madoffian madness, it made headlines. These headline set off a round of Congressional salutes, This is an  index finger, pointed anywhere but back at its owner. Heads have rolled, and I am sure more are on the block. But will the right ones be there?

Did Thomsen cozy up to Madoff and others? No, I don’t believe she did. I believe Linda Chatman Thomsen took the fall. In Washington and on Wall Street, the call girls don’t have anything to worry about – they will always have a job.

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