The new Securities and Exchange Commission inspector general, David Kotz, is working feverishly to restore confidence in the agency following a string of botched cases, according to Reuters.
Mr. Kotz, who was recently named inspector general in January (InvestmentNews, Jan. 14), drafted a letter to Senate Finance Committee ranking member Charles Grassley, R-Iowa, on Feb. 13 announcing a series of reforms planned for the SEC to ensure future investigations are handled better.
Some of the reforms outlined in the letter according include making sure the complainant is interviewed first and on the record, and ensuring confidentiality to potential witnesses whenever feasible.
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The letter was sent in the wake accusations that the SEC of mishandled the 2005 dismissal of the agency’s former attorney Gary Aguirre after he requested to interview Credit Suisse First Boston chief executive John Mack (now at Morgan Stanley) in an insider trading investigation (InvestmentNews, Aug. 31, 2006).
