Second Circuit Rules on case against the SEC.
Dean Lawrence Velvel – “In my judgment, the opinion opens the door to wholesale abuse of regulatory powers whenever an agency wishes not to exercise power given it by Congress, regardless of how terrible the agency’s inaction may be. Now more than ever, Congress must act to correct the grievous injustice, since the courts won’t. I think that Congress should also denounce this opinion as a terrible deformation of congressional intent. It permits regulatory bodies to eviscerate Congress’ purposes at their discretion. Congress never intended discretion of that magnitude. (Did it intend, for instance, for the FBI to have the discretion not to investigate murders?). You will note that the court gives no specific reasons whatever as to why the plaintiffs allegedly fell short in showing that the SEC lacked justification for failing to act against Madoff (yet the court expressed “antipathy” for the SEC’s conduct). It is plain that the court could give no reasons justifying the failure (because there were none), and that it simply blinked when it came to holding a major governmental body liable for horrific misconduct — and thereby, as indicated, vitiated Congress’ purposes and opened the door to a wholesale screwing of citizens by agencies. As said, Congress should both denounce this and act against it.”
Click here for a copy of the opinion.
Click here for the amicus brief filed by NIAP.
