REAL WORLD EVENT DISCUSSIONS

One judge takes a stand

POSTED BY: NIKI2
UPDATED: Wednesday, November 30, 2011 09:56
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Wednesday, November 30, 2011 7:24 AM

NIKI2

Gettin' old, but still a hippie at heart...


Hmmmmm....
Quote:

Maybe the Occupy Wall Street movement is making everyone just a little bit more thoughtful about the roles and responsibilities of both the financial services industry and its regulators toward investors. At least, that’s one possible conclusion we can draw from the unexpected decision by Judge Jed Rakoff, of the Federal District Court judge for the Southern District of New York, to nix the proposed $285 million settlement between the Securities & Exchange Commission and Citigroup over allegations that the bank didn’t disclose to investors that it was involved in selecting investments for a mortgage-bond investment pool – as it continued to sell those investments short.

It’s long been the custom for the SEC and its targets to hammer out deals behind closed doors in which the banks or other offending parties agree to pony up big sums to settle allegations -- without either admitting or denying those allegations. It’s also been the tradition for judges to rubber-stamp said deals. Everyone, it seems, has been reluctant to air the complex details of the transactions underpinning SEC charges: regulators worry about the difficulty of getting a jury that grasps the details while the banks worry that publicly parading the charges will result in more mud being flung around, some of which will stick. Besides, why not settle if you don’t have to admit you did anything wrong.

In the new world that Judge Rakoff envisages, that’s just not acceptable. “In any case like this that touches on the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives,” he wrote in the ruling tossing out the Citigroup settlement, “there is an overriding public interest in knowing the truth.” And without an admission on the part of Citigroup – or any other institution targeted in a regulatory investigation – the truth of the matter remains unknown. It doesn’t matter that Citigroup agreed to fork over a sum of money. What matters is why. Thus, Rakoff wrote, the quid pro quo at the heart of countless SEC settlements “serves no lawful or moral purpose and is simply an engine of oppression.”

Now, everyone in the financial markets knows what lies behind the wording of a settlement in which a target agrees to cough up millions of dollars to make regulatory offenses go away, even while neither admitting nor denying the charges. Wink, wink, nudge, nudge. But Rakoff wants to go beyond that and hold financial institutions truly liable for their actions and – sometimes – their inaction. That kind of stand is not going to win the judge many fans either in Washington or on Wall Street, where neither admitting nor denying wrongdoing is a cozy little game. More at http://www.thefiscaltimes.com/Columns/2011/11/29/The-Citi-SEC-Rulings-
Unintended-Consequences.aspx#page1

...and wouldn't it be nice to blow that cozy little game into pieces?

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Wednesday, November 30, 2011 9:56 AM

FREMDFIRMA



It's long past time someone, anyone, took Citi to task for their abuses, in fact I'd have no problem prosecuting them under RICO as a criminal syndicate cause that's essentially what they are.

I mean they got kicked outta japan for financial misconduct, and that takes some doing, china hung a couple of em for the same, but the events in jakara really take the cake, as Citibank debt collectors kidnapped and tortured to death local politician Irzen Octa.
http://en.wikipedia.org/wiki/Irzen_Octa

In response, apparently some members of the TNI (indonesian military) wrecked up some of those third party bastards hired to do Citis wetwork, trashing their offices and subjecting some of them to the same treatment, in a few cases fatally.

Citigroup is one of those things that, the deeper you dig, the darker it gets, until it gets so goddamn awful no one wants to look anymore - but transparency is a start, cause dealings like that cannot survive an environment of transparency and accountability.

That said, Citi will just double down on the settlement and everyone will fall silent, or just disappear, you watch.

-Frem

I do not serve the Blind God.

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