Harry Markopolos_Hero At Large


We need to model our heroes after Harry Markopolos. He reminds me of the Hancock character played by Will Smith in 2008's movie of the same name. In the movie however, it was the whole of the people who didn't initially like Hancock. In this case, it is the entities below as well as the industry. 
Harry Markopolos has not set out to be a hero of the people, but given some encouragement, can stand up to champion for the people and lead others to do the same.

It was a day that will live on in history! 

The Federal Reserve System (FED), Securities and Exchange Commission (SEC), and the National Association of Securities Dealers (NASD) where actually shaking in their shoes as Harry Markopolos testified before the nation today. Wall Street and corrupt entities in government where so full of themselves that they may have literally lost their morning coffee 'n bagel while watching the strong, hard hitting testimony. So full of themselves that they continued to dis-serve investors world-wide, and protect large companies that are, or might be committing fraud and unethical acts upon the market, and upon the investing public.

Harry Markopolos tried in vain for just under ten years to warn, plead, beg, and badger the SEC to the existence of the Madoff Ponzi Scheme. He testified that it took him all about five minutes to mathematically support his findings that it was impossible for the Madoff firm to make that much money consistently over time. He said that he and his team then took only several hundred hours to materially support his initial findings that this was a ponzi scheme and was not serving in the best interests of the investing public.

When asked about submitting findings to the NASD, he said that he had even worse experience with the NASD than he had with the SEC. He also said that the FED has done a worse job in regulating the banking system, than the SEC has done regulating Wall Street. (queue the green vomiting)

Markopolos strongly advises that we need to replace most if not all the staff members of these entities. Suggests that they be replaced with balding, white haired successful men and women, who are well heeled experts in the field, and who would be highly motivated to go after wrong-doers (foxes rather than chickens). Also, those who would not be able to use these positions as stepping stones from or into the corporate market, as they are now. Washington panel members referred to this as the revolving door. He said that these regulators should have no incentive for higher paying and bonus giving jobs. Senior financial experts would have none he suggested.

As per the way to do this, he strongly advised a regulator agency that had a clear mission of finding criminals. Of having transparency, a combined database, and one that is highly ethical. As per a main program and whistle blower incentive, he suggests a financial compensation that would make the whistle blower like a bull dozer, willing to run down anyone, or anything trying to stop him/her, in order to get that compensation. Normally, people who do even remotely what he has done to bring an injustice to light, have been blacklisted by industry. Blacklisting is an industry and corporate practice that exists, to frown upon truth, rather than deception, crimes, and unethical business practices.

Markopolos defended the SEC in the question of corruption vs. incompetence. He said that in defense of the SEC, they were merely grossly incompetent and not corrupt. He suggested that if the SEC was corrupt, he might not be alive today. That if they had taken money to keep quiet, he might not be testifying on the matter.

He went on to testify that there were probably more than 5% of mobster participation. And given the airing in the media to speak directly to organized crime, he said: "I worked for you too, to try and prevent Madoff from zeroing out your account, I'm the good guy here!" Meaning that every investor was a victim in the Madoff Ponzi Scheme. The panel then suggested that if Madoff took the money of organized crime, perhaps he should forever remain in his $7 million dollar penthouse, and not come out onto the street.

He also says that the size of Wall Street has to be matched with the size of regulation determined to seek out and take down the criminals.

This country needs heroes like Markopolos. We should, but we don't have them. They should be in every sector of the economy and society. They should however start with our President, and all of our elected officials. As Markopolos put it, it should start at the top. Now there's a challenge for Washington!...are you up to it?

Harry Markopolos is this nation's hero at large. May God protect he and his family. May he be held in high regard, and a light to lead us back to ethical finances that work for the interests of this nation's people.