In this last week’s World Finance, reporter Gretchen Cashen highlights Eric Ben-Artzi’s bold gesture in refusing a Whistleblower reward and why he did so, his experience at Deutsche, and the parallels with mine at Citigroup.
Most importantly, it takes a hard look at one of the most egregious issues in government: that of the regulators, most specifically, the Securities and Exchange Commission (SEC). My own experience is indicative of their lack of accountability. When I could not persuade Citigroup’s Board of Directors to conduct an internal investigation of the bank’s financial malpractices, I turned to the SEC.
Turns out it was all in vain, as the 1,000 pages of fraudulent activity I had documented was not only buried, it was locked up. The SEC classified my testimony as “confidential and trade secrets” and has repeatedly refused to release it, despite much of it being public information.
Like Ben-Artzi, I believe, there is an “incestuous” revolving door relationship between Wall Street banks and the regulators. Anyone who leaves the SEC has a ready-made position within the banks or those who support them.