FINRA Had No Authority In Madoff Fraud: Schapiro

Law360, New York (January 15, 2009, 12:00 AM EST) -- President-elect Barack Obama's pick for head of the U.S. Securities and Exchange Commission told the Senate Banking Committee on Thursday that the Financial Industry Regulatory Authority had no jurisdiction in the Madoff scandal, saying the current regulatory scheme allows misconduct to elude regulators.

At her confirmation hearing, Mary Schapiro, the current head of FINRA, said the organization had not been aware of the alleged Madoff investment advisory fraud.

FINRA had jurisdiction over Madoff's broker-dealer activities and conducted periodic examinations as usual, but the organization had no...
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