Anyone who still believes the financial markets need more regulation should watch this continuously until they understand the true nature of our problem. More regulation is a distraction. Congress consistently regulates the wrong things and then looks the other way.

This morning, the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises is holding a hearing to assess the alleged $50 billion investment fraud engineered by Mr. Bernard L. Madoff. This is the second in a series of hearings that will help to guide the work of the Financial Services Committee and the Capital Markets Subcommittee in the 111th Congress in undertaking the most substantial rewrite of the laws governing the U.S. financial markets since the Great Depression.

Rep. Gary Ackerman questioned witnesses from the Securities and Exchange Commission.

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