Summary Box: SEC watchdog finds incompetence

INCOMPETENCE AT THE SEC: The inspector general of the Securities and Exchange Commission has found the agency bungled its five investigations of Bernard Madoff’s business, despite numerous red flags raised over 16 years about the multibillion-dollar fraud. While the IG’s report found incompetence, it discovered no evidence of corruption at the agency with regard to the now-disgraced financier.

WHAT DID IT MEAN FOR THE AGENCY?: Revelations in December of the SEC’s failure to uncover Madoff’s massive Ponzi scheme ignited one of the most painful scandals in the agency’s 75-year hsitory.

WHAT’S BEEN DONE? SEC Chairman Mary Schapiro, who took over in January, has brought changes to the agency including revamping operations and buttressing enforcement efforts. Four high-ranking SEC officials — including the enforcement director and the head of the inspections office — have left the agency.