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Today, U.S. Representative Bill Posey (R-FL) and U.S. Senator John Barrasso (R-WY) re-introduced the Maintaining Agency Direction on Financial Fraud Act or MADOFF Act. The Act blocks the Security and Exchange Commission’s (SEC) requirement that companies disclose the impacts of climate change on their businesses.

“I think the SEC has its priorities wrong,” said Posey. “We know the SEC was given all of the evidence on Bernard Madoff’s $65 Billion Ponzi scheme in 1999 and they failed to act. Many institutional investors spurned Madoff in the early 1990’s due to discrepancies. Why didn’t the SEC catch on to his scheme? Instead of enforcing climate change policies, the SEC might want to focus its attention on protecting investors from fraud and abuse in the financial markets. With so much capital investment at stake every day, we can’t afford another Madoff scandal because the SEC was distracted by other issues such as climate change.”

“In this economy, the SEC’s main responsibility should be to protect American investors and maintain fair markets,” said Barrasso. “Instead, it’s actually using time and resources on regulating climate change. This is yet another startling example of how the Administration is making it worse for job creators across our country. Our bill blocks the SEC from forcing American employers to conduct burdensome and expensive climate analysis.”


BACKGROUND

On January 27, 2010, the Securities and Exchange Commission (SEC) voted to require companies to publicly disclose the impact climate change will have on their businesses. As The Washington Post reported, this includes “new regulations or legislation they may face domestically or abroad to potential changes in economic trends or physical risks to a company.”

A version of the Maintaining Agency Direction on Financial Fraud Act was introduced by Posey and Barrasso in the 111th Congress.