# ASIC - corporate watchdog or corporate undertaker?



## mellifuous (30 September 2009)

Harry Markopolos said 

"... that's typically how the SEC does it  ... they come in after the crime has been committed, they toe tag the victims, count the bodies, and try to figure out who the crooks were after the fact, which does none of us any good ..."

http://www.scribd.com/doc/12911303/60-Minutes-Whistleblower-Harry-Markopolos-on-Madoffs-Ponzi-Scam-March-1-2009

I agree that ASIC would find itself in good company with the SEC.

I wonder how many agree with Mr. Markopolos?


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## Julia (30 September 2009)

I agree completely.  They are about as useless as, um, mammary glands on a bull.


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## Bushman (30 September 2009)

The whole system is based on historical data - ASIC, auditors etc. No wonder it doesn't spot the rogues. 

Its the legislation that needs to be tightened, followed by giving the pencil pushers some more dough to attract the 'best or the brightest' away from the nefarious investment banks. Also, lots of 'investment classes' for the retail investors and their advisers so they make some smarter choices. 

Imagine if rather than paying out fat bonuses, the institutions were forced to contribute to the 'good corporate citizen' levy that meant the bright young things worked for investors rather than shareholders? 

Its interesting the disconnect between say medicinal products and investment advice. The rules and regulations ensure that no-one out there ingests a drug that will harm them i.e. saving lives. Yet the same duty of care is not extended to life savings?  

Can a bull have 'gender dysmorphia'?


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## Julia (30 September 2009)

Bushman, I'm not at all sure that ASIC lacks all the necessary power to act.

I suspect rather that they simply stuff about 'considering complaints' until all the damage has been done.  So maybe more a case of lack of political will than anything else.

I remember many years ago when I was involved in an investment via a solicitor who turned out to be crooked, they reluctantly became involved long after we had all done our dough.  Even at that late stage they spent months sending out innumerable letters advising that they were, um, considering their options.
In the end, despite investors losing collectively many millions, and in many instances as in Storm all their savings, they gave the dodgy solicitor a slap on the hand.  I think he was struck off by the Law Society and that was effectively his only punishment.


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## GumbyLearner (30 September 2009)

What about when FOREIGN powers decide to act? Buy and/or sell?

Cashed up and ready to go?

Dumb numb Aussies? 

Wait a minute, we are not dumb or numb?

Let's wait a while...


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## doctorj (30 September 2009)

The job of ASIC is not to ensure no business fails and no investor loses money.  Capitalism requires that some succeed and others fail and we're all better off for it.

ASIC's job is to administer a set of rules designed to ensure the fairness and transparancy of Australia's financial markets.  Nothing more.


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## GumbyLearner (30 September 2009)

Not dumb and numb that's Aussies FOR SURE



Well maybe not so!  Well, not really down the river.


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