Good Question

As Stephen Bainbridge notes, any general counsel of a publicly held corporation would tell the CEO of that corporation about the presence and activities of misbehaving employees.

So why on Earth weren't Barack Obama and/or Treasury Secretary Jack Lew informed earlier about misconduct at the IRS? It's one thing to want to make sure that there isn't interference in the process from inappropriate quarters. But it is quite another to be left completely ignorant. Quoth Bainbridge:

. . . First, telling the POTUS about an investigation governmental misconduct in now way suggests that the President interfered with said investigation. Second, the President is not the only one who can interfere with an investigation. To the contrary, if you buy the logic of the "administration officials," it appears that they interfered with the process.

If Ken Lay had told Congress that his Enron subordinates had kept him out of the loop so that it wouldn't appear as though he had interfered with an investigation of the fraud, the Congressmen who adopted Sarbanes-Oxley--an act Obama has often praised--would have howled in derision. And rightly so. Obama should be held to no less a standard.

In short, the guy at whose desk the buck stops should not want to be kept out of the loop.

The number of questions that need to get answered just keeps increasing, now doesn't it?