OIG Slams SEC For Lapse In Regulating Bear Stearns

Law360, New York (October 13, 2008, 12:00 AM EDT) -- Federal regulators failed to adequately supervise Bear Stearns Cos. Inc. and thereby contributed to the investment firm’s collapse, the Office of the Inspector General reportedly has said.

In a report released Friday, the OIG said the leader of the SEC’s Miami office, David Nelson, failed to vigorously enforce securities laws when investigating mortgage-backed securities issued by Bear Stearns, and the OIG has referred the matter for disciplinary action, according to Reuters.

The SEC said the report was misleading and overly reliant on speculation, according to Reuters....
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