SEC Won't Fire Any Madoff-Tarred Employees

Nov 15 2011 | 10:06am ET

The U.S. Securities and Exchange Commission said it has disciplined eight employees over their handling of the Bernard Madoff fraud, but the regulator said it would not fire anyone connected with its failure to catch the $65 billion Ponzi scheme.

Instead of letting anyone go, the SEC said it imposed salary reductions, demotions and suspensions following a probe into 21 employees. Ten of those employees had already left the SEC before the summer and another, who the agency said was deserving of punishment, left before it could be meted out.

The SEC has come under intense criticism, especially from Capitol Hill, for its failure to catch Madoff despite numerous complaints, investigations and site visits to Madoff's Manhattan headquarters.

SEC Chairman Mary Schapiro said she chose not to fire any of the employees because doing so "would harm the agency's work."

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