Eight or nine SEC employees were disciplined by the Commission over their handling of the Bernie Madoff Ponzi scheme.  None were fired, although one resigned before disciplinary action could be taken.  [WSJournal reports 9;  Washington Post reports 8.]  The disciplinary actions varied, including demotions, salary cuts and suspensions. It's common knowledge that the SEC has been harshly criticized for failing to identify the Ponzi scheme earlier - especially since it was whistleblower Harry Markopolos who gave staffers a roadmap to Bernie Madoff's invented trade machinations. Later, a 2009 report by SEC Inspector General H. David Kotz called into question the conduct of 21 current and former staff members for work related to Bernie Madoff. Following the report's publication, the SEC hired outside law firm Fortney & Scott to recommend formal disciplinary actions.  Of the 21 staffers mentioned by the Mr. Kotz, 10 had left the Commission by the summer of 2011. The firm and the SEC's HR director recommended termination for one employee, unless his removal would have an adverse impact on the Commission's work.  That employee, who received the most extreme disciplinary action, was suspended for 30 days without pay and also received a cut in pay and a demotion. The disciplinary actions, which concluded months ago, were first reported today, Friday, by the Washington Post.  [WSJ Online, 11/11/11]