Exhibit 1254 ยท Inspector general audit report
SEC's Oversight of Bear Stearns and Related Entities: The Consolidated Supervised Entity Program (Report No. 446-A)
it is undisputable that the CSE program failed to carry out its mission in its oversight of Bear Stearns because under the Commission and the CSE program's watch, Bear Stearns suffered significant financial weaknesses and the FRBNY needed to intervene during the week of March 10, 2008, to prevent significant harm to the broader financial system.
The SEC Inspector General audited the Commission's Consolidated Supervised Entity (CSE) program as applied to Bear Stearns. The report finds that the program did not carry out its stated mission in its oversight of Bear Stearns and identifies serious deficiencies that warrant improvements. It states that the audit does not purport to show a specific or direct connection between the program's oversight and the collapse.
- Source
- SEC Office of Inspector General
- Date
- 25 September 2008
- Quoted from
- Audit Conclusions and Results, printed p. viii (PDF p. 8). Read from a rendered page image because the PDF text layer is imperfect OCR
- Grade
- Primary record
- Document
- https://www.sec-oig.gov/Reports/AuditsInspections/2008/446-A.pdf
- Accessed
- 2026-11-10
- Cited by
- Findings citing this exhibit
- Note
- Same page, next paragraph: 'This audit was not intended to be a complete assessment of the multitude of events that led to Bear Stearns' collapse, and accordingly, does not purport to demonstrate any specific or direct connection between the failure of the CSE Program's oversight of Bear Stearns and Bear Stearns' collapse.' The 'because' in the quoted sentence is the Inspector General's, and explains why the program failed its mission, not why Bear Stearns failed. The sec.gov copy did not load; the sec-oig.gov URL was read from a Wayback capture.