The SEC has not had a good year. This month alone, the regulator has had to contend with sharp criticisms of its operations under the chairmanship of Christopher Cox and a probe of two of employees accused of insider trading.
Now, the Washington Post is reporting that a senior official attempted “to intimidate and influence” a family member’s broker on multiple occasions.
From the WaPo story, which is based on an internal SEC report:
In the case of the SEC official who acted on her mother’s behalf, investigators said the official, deputy secretary Florence Harmon, allegedly yelled at a Morgan Stanley broker over a disagreement and told him of her position at the agency. She later told a bank executive that he “should have Googled her name before he spoke with her,” according to the report.
The broker told investigators she was trying to “bully him” and informed higher-ups at his firm. The inspector general, who didn’t name Harmon but listed her position, referred the administrator for disciplinary action, up to and including dismissal. Her name was confirmed by an official. She continues to hold her post.
Who’s your momma?
Related links:
SEC chief admits failures in Madoff case – FT
SEC pledges to strengthen its oversight – FT
SEC mauled over Bear Stearns role – FT