SEC Under Fire Over Fraud

The failure to detect what could be the world's biggest fraud allegedly perpetrated by long-time investment adviser Bernard Madoff has raised fresh questions about the capabilities of the Securities and Exchange Commission, the U.S. markets watchdog. It is also yet another black mark on the U.S. regulatory regime, which has come under criticism during the financial crisis as numerous gaps and oversight weakness have been exposed. The alleged fraud pointed to "a systemic failure" and raised "fundamental questions" about the regulatory structure in the U.S., Bramdean Alternatives, a UK investment fund which invested with Mr. Madoff, said in a statement over the weekend.