Will Congressman Darrell Issa,chairman of the House Oversight and Government Reform Committee, be adding insider trading to his list of investigations? Normally one would expect the Securities and Exchange Commission to handle the mundane business of trashing hedge funds and chasing down high profile miscreants such as Martha Stewart. But alas, the SEC is a target of Mr. Issa's committee and insider trading involves the Dept of Education. The most ethical SEC chairman ever, Mary Shapiro, is scheduled to testify before Mr. Issa's committee on Thursday concerning the most ethical SEC general council ever, David Becker who left his post last week. It seems Mr. Becker's deceased mother had invested with one Bernie Madoff and Mr. Becker was less than even handed in recouping her losses, so much so he is being sued by other Madoff victims.
Turning to the Dept of Education, Citizens for Responsibility and Ethics in Washington (CREW) has obtained, through a FOIA request, 188 documents from the email account of the most ethical Undersecretary of Education ever, James Kvaal. It seems one of Mr. Kvaal's underlings, David Bergeron was corresponding with a hedge fund short seller, Steven Eisman. The subject of these emails was the effect proposed Dept Education regulation would have on the performance of the stocks of for profit colleges.
One thing is certain; Mr Issa has his work cut out for him.
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