Steven Speilberg, Frank Lautenberg, et als. These are smart guys. They must have wondered how this guy was generating the returns he claimed and his "auditors" certified.

I guess they must have thought he was the smartest guy on the planet. Smarter than anyone else? Year after year? You think they all thought that?

I guess they never heard of Enron or WorldCom or any of the other fraudulent audited financials foisted on the gullible investor.

OR...........

Maybe they wondered how he was doing it, but as long as they were winners, don't ask don't tell.
IOW: FTW as long as I'm getting mine, I don't care if it's legit or not.

Fear not, help os on the way. More regulation to come.

Obama Keen to Regulate Finance
By JONATHAN WEISMAN
President-elect Barack Obama said Thursday that remaking the nation's financial regulatory system will be one of his first initiatives, and he pledged to streamline authority, consolidate agencies and spread financial oversight far beyond the banking system.

New regulations are likely to fall on financial institutions currently seeking federal assistance that are either lightly regulated or not regulated at all, Obama aides said. Mortgage brokers are under particular scrutiny, as are hedge funds and private-equity firms.

Mr. Obama, who introduced his financial-regulatory team Thursday, hinted at consolidating the hodgepodge of financial regulators, including the Securities and Exchange Commission and the Commodity Futures Trading Commission. One focus will be revamping the system so that financial firms can no longer shop around for regulatory agencies that offer the lightest possible touch, an Obama aide said.

Mr. Obama will also have an immediate opportunity to remake the Federal Reserve with three appointments to the reserve board.

"The need to potentially consolidate some of the regulatory agencies that are out there, to streamline them, to make clear who's got what mission so that things aren't falling through the cracks -- those are all going to be part of the review that we do over the next several weeks," Mr. Obama said.

Obama aides said they hope to have the beginnings of a new regulatory regime ready to present April 2, when the Group of 20 nations convenes in London.

At a news conference in Chicago, Mr. Obama introduced his choice to lead the SEC, Mary Schapiro; his pick for the CFTC, Gary Gensler; and a new member of the Federal Reserve Board of Governors, Daniel Tarullo, one of the three to be named, calling them tough, common-sense regulators.

"We have been asleep at the switch, not just some of the regulatory agencies, but some of the congressional committees that might have been taking a look at this stuff," Mr. Obama told reporters in Chicago. "We have not been as aggressive, and we've had a White House that started with the premise that deregulation was always good. And so, what I said during the campaign, I meant. We are going to have to greatly strengthen our regulatory apparatus."
Mr. Obama will take office amid a multiheaded economic crisis. He already has planned a giant fiscal stimulus plan to pump money into the economy, and could quickly have to tackle the future of the auto industry and the Bush administration's financial bailout.

"The next few months are an unprecedented moment of opportunity both to respond to the current crisis and to put a foundation in place for a more prosperous, more stable and more inclusive economy," said Lawrence Summers, who will direct Mr. Obama's National Economic Council. "If there seems to be a lot of ambition, the ambition reflects the nature of the moment."

Mr. Obama's team generally won praise from industry officials and lawmakers who will help finalize any regulatory legislation. Scott Talbott, senior vice president for government affairs at the Financial Services Roundtable, called the team pragmatic, saying they combined education, experience and "an intimate knowledge of the current financial-services regulatory structure."

Micah Green, a Patton Boggs attorney and former head of the Securities Industry and Financial Markets Association, a trade group, said the timing of the announcement -- before the president-elect's cabinet is complete -- was "extraordinary." He added, "It speaks to the priority of the issue." Mr. Green said their focus will likely be on establishing a new regulatory framework to watch over the flow of money.......................

http://online.wsj.com/article/SB122965186108420649.html