Here is a laugher: Dealbook is reporting that former S.E.C. Chairman Harvey Pitt is now criticizing Dodd-Frank. The giant SEC FAIL of the past decade traces, in no small part, to the great work of Mr. Pitt.

As a reminder of Pitt’s sterling ethics and his service to the investing community, I give you this brief Bailout Nation excerpt:

“Over the course of two terms, Bush appointed three SEC Chairmen, each ill-suited for the position. It was a veritable parade of poor choices for the role of regulating stock markets. His first appointment, Harvey Pitt, was a securities industry defense attorney and was wholly unsuited to the position. Instead of representing the interests of investors, Pitt was an industry lapdog. Pitt pledged a “kinder and gentler” SEC just when the opposite was needed in the midst of a huge run of corporate misfeasance.

In an era of corporate accounting scandals, Pitt had close ties to the accounting industry. And for inexplicable reasons, Pitt met with the heads of companies under active SEC investigation. As a Wall Street lawyer, Pitt had “recommended that clients destroy sensitive documents before they could be used against them – advice that seemed to find echoes in the SEC’s investigations into Enron and its shredder-happy auditor, Arthur Andersen.” Pitt had to recuse himself from many of the SEC’s votes — they were frequently about the clients he had represented as a defense attorney. By July of 2002, Senator (and future GOP presidential candidate) John McCain was calling for Pitt’s resignation.

Pitt, not surprisingly, demoralized the agency. To investor advocacy groups, having Pitt as SEC chief was like putting Osama bin Laden in charge of Homeland Security. . .”

Listening to Harvey Pitt discuss securities regulations is like taking trading advice from Nicholas Leeson . . .

Category: Bailout Nation, Really, really bad calls, Regulation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

16 Responses to “Harvey Pitt, Regulatory Expert”

  1. SamAntar says:

    Dear Harvey Pitt:

    I can assure you, as a convicted felon, that every crooked company agrees with you on repealing Dodd-Frank whistleblower provisions.

    Sincerely,

    Sam E. Antar (Former Crazy Eddie CFO, former CPA, and a convicted felon)

  2. VennData says:

    …like listening to Wilt Chamberlin regale his life with the Promise Keepers.

  3. Conejo says:

    Three cheers for Crazy Eddie calling out Harvey Pitt for having become just one more highly-compensated tool of moneyed plutocrats.

    Unlike many of the lobotomized opponents of even measured regulation, Harvey Pitt is actually smart enough to know the intellectual fraud he is effecting in opposing the admittedly flawed, but effectual, reforms of Dodd-Frank.

    It’s a depressing sight to witness Pitt betraying his legacy as a Chairman of the SEC. Apparently, he really has no shame.

  4. nomorespend says:

    I think you’re missing the broader point which is that the SE is ill equipped to deal with fraud.

  5. QOTD:

    Every set of published accounts is based on books which have been gently cooked or completely roasted. —Ian Griffiths (from his book, Creative Accounting)

  6. ToNYC says:

    All regulators protect those in the club from the others. Kindergarten epic fail.

  7. Jim Greeen says:

    Shame on the media that continue to interview Pitt as if he were a reliable, unbiased, deeply informed source.

  8. [...] Harvey Pitt, Regulatory Expert | The Big Picture. [...]

  9. ToNYC says:

    “Shame on the media”…we’ve got tony montana-sized lines of media up both nostrils if you can believe it; it’s true.

  10. Veneziano says:

    When it comes to being an utter failure at financial regulation, I defer to Mr. Pitt’s expertise.

  11. champs2011 says:

    China declares GDP of 9.5% in Q2. No hard landing or crash

    http://gmbpost.com/investment-news/china-gdp-comes-above-consensus-at-9-5/

  12. Chief Tomahawk says:

    “Listening to Harvey Pitt discuss securities regulations is like taking trading advice from Nicholas Leeson . . .”

    Yeah, but that won’t stop Larry Kudlow from booking him as a guest.

  13. rktbrkr says:

    Pitt “shred it or regret it”…the Sgt Schultz defense

  14. BadBisco says:

    Great timing, just received an invite for the Annual Global Investment Conference in Sept where Pitt is a speaker along with such spectacular people as Kissinger, Cheney, and Dodd. What a lineup! Murderers’ Row

  15. toddie.g says:

    “Heckuva job, Pitty!”