DOJ SEC Exempt from Financial Reform Act CFPA

Big news this morning that the financial reform bill exempts the SEC from transparency. Perhaps even bigger news is that the corrupt DOJ is also exempt. The bottom line, no transparency at either agency. Is this how we will fund the creeping lawlessness at the DOJ? Mary Shapiro, SEC head, and Eric Holder are free to ignore whistleblowers again, and hide whatever needs to be hidden. Did the Republican senators on the Senate Banking, Housing and Urban Affairs Committee know the DOJ and the SEC were exempt? If they did not, why not, and if they did, why did they not get to a microphone to tell us about it? We need an Operation Microphone to encourage Republicans to report these important “nuances” in legislation. See a list of Senators below.

Mary Shapiro, Eric Holder and Barack Obama

On page 24 of the CFPA Act is this: (thanks to H1JEN1 for ferreting out the truth – please read her excellent commentary.)


(1) DEPARTMENT OF JUSTICE.—Nothing in this title shall affect the authorities of the Department of Justice.


(A) IN GENERAL.—Nothing in this title shall be construed as altering, amending, or affecting the authority of the Securities and Exchange Commission…The Agency shall have no authority to exercise any power to enforce this title with respect to a person regulated by the Securities and Exchange Commission.

Mary Shapiro, currently the head of the SEC, was appointed by G.W. and promoted by Barack Obama. As head of FINRA (Financial Industry Regulatory Authority) she simply ignored the Bernie Madoff scam, even though a whistleblower was whistling.

FINRA is a private agency set up by Wall Street. It is intended to the first line of defense in policing the activities of securities firms and protecting investors. When lawsuits were filed, they were dismissed because FINRA has complete immunity under the law. FINRA is accountable to no one.

Claims of Schapiro’s close relationship with Bernie Madoff and a glaring lack of regulation of his bilking activities, even with a very persistent whistleblower are numerous, and Schapiro was Madoff’s son’s employer. Obama promoted her from FINRA to the head of the SEC anyway.

Here are the names of the Senators on the Senate Banking, Housing, and Urban Affairs Committee. If you find your Senator on the list, please call the office and ask if they knew about this (which is on page 24 of the bill – not exactly buried), and if so, why did they not find a microphone and loudly tell us about this exemption? Remember, the issue is not that these Senators voted for it, because they did not, but the issue is getting to a microphone and telling the country what is going on. Background on the CFPA. See a comparison of the House and Senate versions of CFPA. Read a timeline and good analysis at HotAir.

Richard C. Shelby Ranking Member (R-AL)
Robert F. Bennett (R-UT)
Jim Bunning (R-KY)
Mike Crapo (R-ID)
Bob Corker (R-TN)
Jim DeMint (R-SC)
David Vitter (R-LA)
Mike Johanns (R-NE)
Kay Bailey Hutchison (R-TX)
Judd Gregg (R-NH)

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