Not Exactly Gangbusters On Wall Street

The NASD forms a task force to root out the Mob--but more spine is needed

It was supposed to have been a routine speech. But when Mary L. Schapiro, chief regulator at the National Association of Securities Dealers, addressed a meeting of New York securities analysts on "Market Trends and Regulatory Responses" on Mar. 17, she dropped a bombshell. Schapiro announced the formation of a task force aimed at attacking Mob infiltration of brokerages. A day later, a longtime securities industry watchdog, Representative John D. Dingell (D-Mich.), released a letter from Schapiro saying that the NASD has "significant ongoing investigations" into all but one of the brokerages--and "many" of the companies"--mentioned by BUSINESS WEEK in its cover story, "The Mob on Wall Street" (Dec. 16).

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