According to HuffPo last month, New York Federal District Judge Jed Rakoff rejected a sweetheart settlement that the SEC proposed with Citigroup, finding it deficient in many ways and calling the fine nothing more than "pocket change." In fact, the settlement was so weak it actually rewarded securities fraud and showed crime pays. But, the rejection was still huge news because judges just don't say "no" to the SEC. Almost always, the SEC files papers in a court to settle a case and the judge always just signs them. It is rare for a judge to even ask a question before signing.
Judge Rakoff is different. He takes his job as a judge seriously. He carefully reads the court filings and he asks questions to determine, as judges are supposed to, whether or not a proposed settlement is fair, adequate, reasonable and in the public interest. The SEC doesn't like this. It expects judges to pull out their rubber stamp of approval and apply it quickly, without having the nerve to question them.
http://www.huffingtonpost.com/dennis-m-kelleher/sec-citigroup_b_1153401.html?ref=business
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