Full Text Of Rakoff Order Exposing SEC's Corruption And Cronyism

Tyler Durden's picture

One of those hopefully seminal moments, when someone, somewhere decided to take a stand against the perpetual engine of corruption, greed, and cronyism. From Judge Rakoff's Order

For example, the Consent Judgment would effectively close the case without the S.E.C. adequately accounting for why, in contravention of its own policy, see Order, 8/25/08 (quoting the policy), it did not pursue charges against either Bank management or the lawyers who allegedly were responsible for the false and misleading proxy statements...

 

Oscar Wilde once famously said that a cynic is someone “who knows the price of everything and the value of nothing.” Oscar Wilde, Lady Windermere’s Fan (1892). The proposed Consent Judgment in this case suggests a rather cynical relationship between the parties: the S.E.C. gets to claim that it is exposing wrongdoing on the part of the Bank of America in a high-profile merger; the Bank’s management gets to claim that they have been coerced into an onerous settlement by overzealous regulators. And all this is done at the expense, not only of the shareholders, but also of the truth.

 

Yet the truth may still emerge. The Bank of America states unequivocally that if the Court disapproves the Consent Judgment, it is prepared to litigate the charges. The S.E.C., having brought the charges, presumably is not about to drop them. Accordingly, the Court, having hereby disapproved the Consent Judgment, directs the parties to file with the Court, no later than one week from today, a jointly proposed Case Management Plan that will have this case ready to be tried on February 1, 2010.

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Charles Wilson's picture

See companion article: "Now they're getting milk from cows!"

 

CW

chumbawamba's picture

Eh, they'll find a dead six year old girl with stains on her panties under Rakoff's bench in a couple days.  End of story.

I am Chumbawamba.

JohnKing's picture

He should just refer the whole thing to the FBI, he can't possibly expect the two colluding parties (BofA and SEC) to proceed in in any manner that isn't dodgy if not criminal.

lizzy36's picture

yeah, cuz the FBI ain't dodgy

JohnKing's picture

We need a Department of Dodgy, to make sure that all regulators are upholding high dodgy standards.

"The Department of Dodgy brought forth a complaint today charging that a regulator at the SEC was acting ethically. Mary Shapiro responded to the complaint by promising a rapid, robust solution to any ethical activities under her purvey."Ethical behaviour poses a systemic risk to our intitutions and we will not tolerate a playing field that is level for all participants. Institutions funded by the Federal Reserve need that protection, it's also good for jobs." "

 

Mr. Anonymous's picture

It's already called the US Government.

Anonymous's picture

Um...it wouldn't be a Department of Dodgy, because that would require Senate confirmation. It'd have to be a Dodginess Czar.

aldousd's picture

Ministry of Information.

AN0NYM0US's picture

chumbawamba - you're famous over at evil.speculator

 

http://evilspeculator.com/?p=10844

chumbawamba's picture

Heh!  Too funny.  Thanks for the link.

I am Chumbawamba, and I'd rather be infamous.

contrabandista13's picture

Chumba:

I did the same...  Stashed about 50k...  been trading sugar with it and I'm up to 250ish k...

.However, I did not change my number... They call and I pretend not to speak English, I tell them... "no speak english, speak latvian...."  It's a great deal of fun, they are trying to find an interpreter to speak with me....  by that time I'll be Turkish....

 

ciao,

 

Econolicious

 

chumbawamba's picture

Excellent.  On one of my accounts I changed the name, address and phone number to someone I didn't like, then set the preferred language on my account to "Spanish".  I'm sure that person is having fun fielding calls all day from Spanish speaking reps.

As for my credit, I put a big chunk in gold and silver to augment my current stash, then spent the rest on food, ammunition, and other essential supplies for the coming shitstorm.  Somehow I don't think I have enough.

I am Chumbawamba.

Careless Whisper's picture

Chumba, are you confusing BAC with GS ?

sgt_doom's picture

That would be a real change in SOP.

Normally, they find them naked, highly drugged, and walking in the middle of an 8-lane superhighway until mowed down and crushed beyond description.  [If the body can be gotten to prior to the mandatory cremation -- a drug concoction (assuming there's enough left to make an analyses) will be find to be a mixture of PCP, LSD, crystal meth, and some random rat poisons.  At least that's they way they've done it in the past.

Sardonicus's picture

either that or he has a denture cream overdose or some such thing

digalert's picture

Good for the judge, we still haven't seen any heads roll anywhere, sans Madoff, but he was peanuts.

I am a Man I am Forty's picture

40

Off topic:  Does anyone know where Madoff's money went?  According to Markopolos (sp?) , the number was around 17B from clients, 50B on paper, so there should be 17B floating around somewhere.  Of course the media won't scratch the surface as far as I can tell.

 

jdun's picture

Audit SEC workers bank accounts and assets!

Sardonicus's picture

can you even imagine the amount of inside information trades that would get discovered?

TumblingDice's picture

if the number is less than a million then I can imagine it, everything over that threshold makes my head hurt.

TumblingDice's picture

If the judge is looking for a volunteer security team that can't be paid off, he knows where to reach me.

Anonymous's picture

Thanks Judge. Restored a little faith. I feel a little better now.

Yew

DiverCity's picture

This man does indeed possess a pair.

Sardonicus's picture

I imagine GS stands to benefit from BAC/MER getting tarred and feathered.

Too big to fail, but not too big to stink. GS has got loads of booty from the absence of LEH in the bond markets.

It's all a chess game.  Look for the tools and tactics to change. 

waterdog's picture

So ordered, this is going to be good entertainment for some time to come.

Anonymous's picture

No the judge will be found dead wearing girls panties about Jan 2010

AN0NYM0US's picture

just read this now at Jesse's

On President Obama's tough talk with Wall Street:

"He may as well walk into the aftermath of a vicious bank robbery and say to the perps with cash still in hand, "Now you boys stop doing that this minute. This is the fifth time you have stolen money and endangered lives of innocent people. You can keep the money this time, but you had better not do it again. Sheriff Summers and Deputy Tim,who you all know so well from drinking with them after hours at your clubs, will come and stop you if you do. And remember that Bennie the Bookie has his eye on you."

 

http://jessescrossroadscafe.blogspot.com/2009/09/it-has-now-become-clear...

Cheeky Bastard's picture

put the judge in the  ( soon to be founded ) " Judges Protection Program ".

Big Al's picture

I'm betting that the SEC will appeal Rakoff's order. If the appeal fails, the SEC will just drop the case.   It will never proceed to trial.

gmrpeabody's picture

After all, the SEC has neither the manpower or funds to proceed with a case they have already deemed closed. End of case.

Anonymous's picture

Exactly. Why is everyone naively pretending that some permutation of "The Law" will suddenly be upheld?

This entire era will be remembered as a great bonfire of legal controls. Nothing that is written is being enforced. Nothing that could possibly hurt the powers-that-be is being carried out.

The dream that the wealthiest and most-powerful will someday have a "day of reckoning" is naive at best. They will not only keep 100% of their fraudulent gains -- but they will forever change the legal and financial regulatory systems to their advantage.

Judge who? Please. This war is over.

Anonymous's picture

It has to go to trial. The SEC can't try to impose a fine and then drop the case when the judge orders them to go to trial. That would set an insane precedent.

Anonymous's picture

This Memorandum Ruling has much broader implications than what's on the surface of the Order. From a macro perspective, it opens the door for more scrutiny of industry, as well as the SEC. Look for this ruling to embolden other agencies, and state AG's, to not be so amiable or cooperative in future settlements or investigations. Good work. And finally, to Judge Rakoff -- thank you for understanding the law, applying it, and having the courage to act in a manner that sends a shot across the bow of both government, and industry on behalf of taxpayers.

Anonymous's picture

It's a sad state of affairs in this country, but true, when a Federal judge is considered to have a set just because he is willing to call bullshit on bullshit...

Handle with care's picture

One thing that makes me salivate was Lewis' performance in front of Congress.  That was aguy who was pissed off at being used by Paulson and Bernanke and was itching to tell everyone so.

 

He flat out stated he was coerced into doing the deal and the matter was dropped!

 

If he's pulled into court and he's being prosecuted directly with the possibility of jail time, there's no telling what he might say

mmlevine's picture


Hey Chumbawamba

I appreciate the attempt but using a six year old girl was a little sick - IMHO

Careless Whisper's picture

At least he didn't say it was a six year old boy.

chumbawamba's picture

Hey, man, I don't stage the crime scenes.  I just recognize the pattern.

Caveat emptor.

I am Chumbawamba.

Anonymous's picture

What's the best thing about having sex with a six year-old girl?

Flip her over and you have a six year-old boy!

Careless Whisper's picture

Judge on proposed settlement:

"... does not comport with the most elementary notions of justice and morality..."

Ouch.

 

wareco's picture

I think this gives Cuomo the green light to pursue his case against BAC.

Anonymous's picture

I think this gives Cuomo the green light to go ahead with his case against BAC.

Anonymous's picture

To quote a previous poster about Chumbawamba:
"Chumbawumba is a twenty-something, I take it?"

"What gave it away, the self-absorption? The self-importance? The 'crass is cool' thing? The mandatory lewdness? Or the Bark at the Moon insanity? Ah , today's twenty somethings...enjoying your Obamaian Paradise, kids?"

http://www.zerohedge.com/article/correlation-sp-500-performance-fed-mone...

chumbawamba's picture

Like I said, I'm trying to be infamous.  Thanks for contributing to my cause!  Without your recognition of my work, I'd be an anonymous nobody...like you.

I am Chumbawamba.

chumbawamba's picture

You bastard.  If you know what's good for you then don't you ever get into my line of sight.

I am Chumbawamba, and I am gay in an 1890s sense, and straight in a twisted kind of way.

Ned Zeppelin's picture

HLN this am: giant sign of Cheeky Bastard being displayed by a protestor at Saturday's march on Washington by those tea party folks. Had a moment when I saw it.

Anonymous's picture

Like the SEC, I like BOA´s defense:
(singin´)I SHOT THE SHERIIIIFFF
CAUSE MY LAWYERS TOLD ME SO...

Anonymous's picture

Predict a trial where no AV rated lawyer and no $1 million a year plus executive can remember anything from the deal. It was hectic stressful time.