A Gap in the Witness List

The witness list for Wednesday's Senate hearings on hedge funds has just come out, and as expected the lead-off witness is Gary Aguirre, former SEC enforcement lawyer and whistleblower. This is terrific. What was expected to be a dreary anti-shorting dog-and-pony show is starting to get exciting.

Aguirre, of course, has raised serious questions concerning a possible high-level coverup in an investigation of alleged insider trading by the Pequot hedge fund. So I certainly would be curious to hear Aguirre's allegations, under oath, and the responses of SEC officials, under oath.

Only one problem: nobody from the SEC has been called to testify.

Seems like a pretty glaring omission to me. The senators should call Cox, and force him to respond to Aguirre's charges-- under oath.

While Aguirre's allegations may or may not have substance, he is making a serious charges and the SEC chairman should address them forthrightly, whether he wants to or not.

© 2006 Gary Weiss. All rights reserved.

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