Senator Charles Grassley chastised the SEC on Friday for failing to detail how it handled nearly 20 referrals of suspicious trading at a major hedge fund, the latest salvo in an escalating face-off between the Iowa Republican and the Commission.

Mr. Grassley last month requested in writing that the SEC specifically explain how it responded to tips about mega-hedge fund SAC Capital.  The referrals, some dating back a decade, had been flagged and sent to the Commission by FINRA.  It turns out the SEC doesn’t do specifics.

“As S.E.C. staff communicated to your staff on June 7, in order to protect confidential and nonpublic investigative information, we generally do not comment on the status of investigations or related referrals, and, in turn, are not providing information concerning the specific Finra referrals you identified.”  - -   Robert Khuzami, SEC Enforcement Director, in a 6/9 letter.

Mr. Grassley, who's been a vocal critic of the Agency in the past, was not pleased with the response.

“This isn’t what I asked for, and it’s not an acceptable response. “I’m looking for the S.E.C. to explain how it handled specific referrals. Did the agency review them and find no credible evidence of wrongdoing? Or are they sitting in a drawer because the agency ignored them? The accounting of how the agency handled specific referrals will shed light into how the enforcement system works or doesn’t work.”  - - Mr. Grassley's statement that contained Mr. Khuzami’s letter.

While declining to get into specifics, Mr. Khuzami did offer up a greatest hits list of the agency’s past actions and a global overview of the agency’s process for handling referrals.

[NYT DealBook, 6/10/11]