An absolute outrage.

[kstewart33]

So investors lose $700 million on this scam and Citigroup pays a $285 million fine without admitting guilt after making an $160 million profit. And they get a huge litigation advantage thrown in the deal.

November 28, 2011

Judge Blocks Citigroup Settlement With S.E.C.
By EDWARD WYATT The New York Times

WASHINGTON — A federal judge in New York on Monday threw out a settlement between the Securities and Exchange Commission and Citigroup over a 2007 mortgage derivatives deal, saying that the S.E.C.’s policy of settling cases by allowing a company to neither admit nor deny the agency’s allegations did not satisfy the law.

The judge, Jed S. Rakoff of United States District Court in Manhattan, ruled that the S.E.C.’s $285 million settlement, announced last month, is “neither fair, nor reasonable, nor adequate, nor in the public interest” because it does not provide the court with evidence on which to judge the settlement.

The ruling could throw the S.E.C.’s enforcement efforts into chaos, because a majority of the fraud cases and other actions that the agency brings against Wall Street firms are settled out of court, most often with a condition that the defendant does not admit that it violated the law while also promising not to deny it.

That condition gives a company or individual an advantage in subsequent civil litigation for damages, because cases in which no facts are established cannot be used in evidence in other cases, like shareholder lawsuits seeking recovery of losses or damages.

More at: http://www.nytimes.com/2011/11/29/business/judge-rejects-sec-accord-with-citi.html?hp

[MannyGoldstein]

1. And the good Judge told the bank and the SEC to fuck a duck

Justice may be served - this time.

[markpkessinger]

2. Which are you outraged by?

If you are outraged by the terms on which the SEC was seeking settlement (and I, for one, certainly find those terms outrageous), then the judge's decision is very good news, indeed.

[lonestarnot]

3. They have criminal judgments entered against them and the fuckers at the top should have to go to

jail. SEC should be tougher!

[dixiegrrrrl]

4. SEC is about civil suits, not criminal suits.

However, it CAN refer to DOJ a recommendation for a criminal investigation, which would be supported by any SEC tough language.
But SEC will not do tough language and DOJ would not follow thru on any criminal investigation, as we all know.

[Nuclear Unicorn]

5. I'm with the judge 1000.00%

The SEC was giving Citi legal cover and because there is no transparency we don't know if the settlement was adequate to the grievance. Make them start over -- in broad daylight -- and if Citi or anyone else did something wrong, the investors can use those proceedings to file their own claims to recoup their losses. The SEC is supposed to be protecting investors, not shielding those who are liable.

LET THE INVESTORS SUE!!!

That would do more to revive the economy and prevent future meltdowns than anything else. It would also deprive the banksters of their stolen loot and bailout bonuses.