Walter J. Stachnik has been inspector general of the SEC since 1989 when the position was first created. Without much warning Stachnik retired late last week.

This timing was interesting given that it coincided with the release of a senate report that was extremely critical of his role in the SEC's mismanaged investigation of suspicious trades at hedge fund Pequot Capital.

Phrases like "not well respected" and "a tool of management, used for retaliatory investigations against disfavored staff" have been referenced in media reports. And senator Arlen Spector said of Stachnik that he could not recall “an I.G. who said less, did less and was thoroughly inadequate in the investigation.”

While the SEC has stated that Stachnik's retirement was planned all along many are reading between the lines given that 1) the SEC hasn't actually announced his retirement ands 2) no replacement is forthcoming.

Get further details on Stachnik via Forbes and to get a look at the full senate report on the Pequot investigation click on the Pequot tag below. The Daily Caveat has you covered.

-- MDT

Labels: insider trading, Pequot Capital, SEC, Walter Stachnik