I am sure the SEC, Morgan Stanley CEO John Mack and others would like the case of Pequot Capital Management to go away, but that isn't happening. Two senators have taken up the cause. And how! Both senators have indicated that a report to be released today finds that the SEC should have followed up much more aggressively on leads involving Pequot market impropriety. Recall that a fired SEC investigator claimed that the probe was thwarted because it involved John Mack, before he became CEO of Morgan Stanley--Mack is a big Republican donor. Gary Aguirre, the let-go SEC lawyer, made a huge public stink and Congress has taken up his cause. The report appears to be damning, essentially agreeing that political issues led the SEC to call off its dogs.

For more:
- here's a New York Times article