Summary Box: SEC says some documents likely tossed

AP News
Posted: Sep 14, 2011 10:23 PM
Summary Box: SEC says some documents likely tossed

DOCUMENTS DUMPED: The Securities and Exchange Commission says some documents from preliminary investigations of major banks likely were destroyed under a former agency policy.

ATTORNEY'S ALLEGATIONS: An SEC attorney has alleged that the agency illegally destroyed records related to thousands of preliminary probes, including investigations of Bank of America, Goldman Sachs, Wells Fargo and convicted swindler Bernard Madoff.

AGENCY SAYS NO PROBES HARMED: SEC Enforcement Director Robert Khuzami said the agency doesn't believe any current or future investigations were harmed by the policy, which allowed documents to be discarded in cases that were closed when staffers decided a formal probe wasn't warranted. A review by the SEC inspector general is under way to determine if any law was violated.