David Kotz, the SEC’s Inspector General, told Fox News’s Neil Cavuto last hour that he will investigate the timing of the SEC’s civil suit against Goldman Sachs. The statement came after Cavuto had asked him questions about the SEC Porn report:
“We need to understand what led to the decision to announce or bring the case on that day. See if there was any undue influence involved and so we’ll look very carefully to investigate that and see what we determine,” Kotz said.
Rep. Darrell Issa, R-Calif., ranking member of the House Oversight Committee, had sent Kotz a letter requesting such an investigation.
“The circumstances of the filing and subsequent events fueled suspicion that the Commission, or one or more of its officials or employees, may have engaged in unauthorized disclosure or discussion of Commission proceedings in order to affect the debate over financial regulatory legislation currently pending before the United States Senate.
“Disclosure rules and procedures at the SEC are important to efforts to prevent insider trading and any violation would be deeply troubling.”
