As discussed here, last week the SEC Office of Inspector General released a report concerning whether a Madoff account that former SEC general counsel David Becker and his brothers inherited created a conflict of interest for Becker because he was involved in discussions during his second stint at the SEC regarding the position the SEC would advocate as to the determination of a customer's "net equity" in the Madoff Liquidation. 

The IG found that at the time Becker participated in these net equity policy discussions, he understood there was a possibility the Trustee would bring a clawback suit against him for the fictitious Madoff profits. "Notwithstanding this knowledge," the IG found, Becker "worked on particular matters that could impact the likelihood, and even possibility, of a clawback suit against him, as well as the amount that could be recovered in such a clawback action."

In the wake of the IG report, a House joint subcommittee hearing was held on September 22 that featured SEC Chair Mary Schapiro, SEC IG David Kotz and David Becker as the three witnesses. Becker's testimony begins at the 2:47:45 mark of the video, the first few minutes of which is Becker's oral summary of his complete written testimony (available here). Becker also answers questions from the subcommittee for over an hour, beginning at the 2:55;30 mark. Check out the video below. 

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