SEC lawyer faces criminal investigation over Madoff

A leading lawyer at the US Securities and Exchange Commission who worked on the Bernard Madoff fraud case is facing criminal investigation.

Bernard Madoff ran a Ponzi scheme that defrauded its victims out of $65bn

David Becker, former general counsel at the regulator, is to be investigated to establish if he had a conflict of interest when dealing with legal matters relating to Madoff.

Mr Becker received an inheritance that included $2m (£1.3m) of Madoff funds.

He worked closely on the compensation policy for Madoff's victims.

In a report by SEC Inspector General David Kotz, it was found that Mr Becker had "participated personally and substantially in particular matters in which he had a personal financial interest by virtue of his inheritance".

It went on to say that "the matters on which he advised could have directly impacted his financial position".

Mr Becker worked directly on policy relating to how victims of the Madoff $65bn (£41bn) Ponzi scheme should be compensated.

Mr Kotz's report said that Mr Becker had made the case for valuing claims in a way that could have restricted powers to claw back money from Madoff beneficiaries, of which he was one.

Mr Becker received from his mother money that included Madoff funds.

SEC Chairman Mary Schapiro has said that she wishes with hindsight that Mr Becker had recused himself from the case.

In a statement, Ms Schapiro said that she took the report, which was published today, "very seriously".

But she added that "it would be inappropriate for me to comment on the Inspector General's referral to the Department of Justice".

William Baker, an attorney for Mr Becker, said the report confirmed his client had notified at least seven senior officials about his mother's account, and that he fully disclosed everything.

The report will be the subject of a US House of Representatives hearing on Thursday.

Mr Becker left the SEC earlier this year.

Read more »

Greece bailout: European Union troika making 'progress'

Talks to avert a financial meltdown in Greece have made "good progress", the European Commission has announced.

There were protests in Athens at the weekend calling for a boycott of banks

Debt inspectors from the EC, European Central Bank, and International Monetary Fund will return to Athens next week for further negotiations.

This so-called troika of inspectors suspended a review of Greece's austerity programme, which was needed to approve further bailout money.

The troika and Greek finance ministers held a teleconference late on Tuesday.

After the teleconference, the EC said in a statement that a full troika mission "is now expected to come back to Athens early next week to resume the review, including policy discussions.

"Good progress was made" at Tuesday's talks, the statement said, "and technical discussions will continue in Athens over the coming days."

The suspension of the troika's full review of Greece's progress in meeting its budget reduction measures had unsettled the global financial markets for days.

The suspicion was that Greece was not making progress, jeopardising the release of an urgently-needed 8bn (£6.9bn)euros tranche of aid.

Greece has been under pressure to plug a budget hole of more than 2bn euros to meet the terms of a 110bn-euro bailout from the troika members.

The debt-laden country needs the rescue funds before it runs out of money to pay such things as public wages and pensions.

Read more »