The shock waves set off by Bernard Madoff's $50 billion scam continue to reverberate with reports that the FBI is now diverting agents from its counter-terrorism divisions to focus on Madoff's fraud schemes. What's clear now is that you can't have a fraud of that size without some assistance.
Which is why accounting firms which looked after the feeder funds that pumped billions into Madoff's Ponzi schemes are in the gun. As the New York Times reports, questions are arising how big firms like KPMG and PricewaterhouseCoopers, supposedly the experts in this area, could have overlooked the red flags.
Meanwhile TPM Muckraker reports that the Securities and Exchange Commission is now in a complete state of panic over its complete failure to spike the fraud before it blew up.
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