The Securities and Exchange Commission has a new division, thanks to Bernard Madoff, who is currently serving 150 years in prison for his role in what has been called the largest securities fraud in U.S. history.
Compliance Week blogger Melissa Klein Aguilar wrote last week that SEC chair Mary Schapiro has appointed University of Texas law professor Henry T.C. Hu to lead the Division of Risk, Strategy and Financial Innovation. The new division combines what used to be the Office of Economic Analysis and the Office of Risk Assessment with other functions that will allow the commission to "identify developing trends" and recommend how to address them before they become as devastating as Madoff's scheme was.
Because the new division will allow legal, financial and economic analysis to occur within one group, it will give the commission "a fresh approach," according to Schapiro.