Top SEC officials to testify at Madoff hearing

Accused swindler Bernard Madoff exits the Manhattan federal court house in New York January 14, 2009. Madoff can remain out on bail and under house arrest, a U.S. judge ruled on Wednesday, rejecting a government appeal to send him to jail. REUTERS/Brendan McDermid

WASHINGTON (Reuters) - Five top U.S. Securities and Exchange Commission officials are expected to testify at a Congressional hearing into why regulators missed Bernard Madoff’s alleged $50 billion (34.6 billion pound) fraud.

The SEC’s director of enforcement, Linda Chatman Thomsen, and the SEC’s director of compliance, inspections and examinations Lori Richards, are expected to testify at Wednesday’s hearing.

The House Financial Services subcommittee on capital markets is holding its second hearing on the Madoff case and intends to use the hearing to help guide its overhaul of the country’s financial regulatory structure.

Also expected to testify are the SEC’s director of trading and markets, Erik Sirri, the agency’s director of investment management Andrew Donohue and its acting general counsel Andrew Vollmer.

Thomsen and Richards have already testified before the Senate Banking Committee.

Reporting by Rachelle Younglai, editing by Gerald E. McCormick