“If investigators can’t search that data, it’s like working with one hand tied behind their backs. It’s a no-brainer that the commission ought to be at least looking at this information and have a computer system that can spot trends and let investigators to review the data as effectively and efficiently as possible,” Grassley stated. “The Securities and Exchange Commission also needs to review the internal audits that the Self-Regulatory Organizations put together to make sure they’re credible and even-handed.”

The report released Monday by the Government Accountability Office (GAO) concerning the SEC’s oversight of Self-Regulatory Organizations is the second of two reviews that Grassley requested as part of his congressional oversight work. The first report of the GAO, issued in September, criticized the SEC for failing to close cases, and keeping them open for years even though there was no ongoing investigation. Both requests stemmed from allegations made by a fired SEC Enforcement Division attorney and, in both cases, the GAO findings validated those charges.

In August, Grassley and Sen. Arlen Specter released their own report on the mishandling of an insider-trading probe involving Pequot Capital Management, Inc. The Grassley-Specter report detailed the Inspector General’s failure to investigate credible allegations by former SEC attorney Gary Aguirre that his supervisors pulled punches in the investigation because of one witness’ political clout.

Grassley said on Monday that the SEC’s Enforcement Division and Office of Compliance, Inspection and Examination brings important civil enforcement actions and administrative proceedings against individuals and companies who violate securities laws and regulations.