It's not secret that the SEC really blew the Bernie Madoff Ponzi scheme opportunity. It had ample opportunity to blow the lid off the massive fraud, but it couldn't rise to the occasion. Yet more confirmation comes from the SEC's own inspector general, who has issued his report on the matter.

The report, as noted by the New York Times, says the agency "fumbled three agency exams and two investigations because of inexperience, incompetence and lack of internal communications." At one point, different units of the SEC were both investigating. Neither one knew about the other. Madoff himself had to inform the parties. The report also found that there was no undue influence peddling by Madoff, which some thought was likely. The good news is that the failure has galvanized the agency, which seems bent on improvement. 

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