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Judge Rakoff Set To Expose Every Detail Of Wall Street's Usage Of The SEC As A Bidet

Tyler Durden's picture




 

And Mary thought she was going to get away easy...

After the SEC attempted a truly staggering feat of legal contrivance by blaming the Merrill bonus fiasco on "understood" arrangements and placing all the blame on counsel, where the trail would end because Bank of America would never waive attorney-client privileges, Rakoff shot back and told the SEC, in no uncertain terms, to not take him or the legal system for Wall Street's marionettes, a role the SEC is more than happy to play day in and day out.

In this sense, Rakoff's response to the SEC is a masterpiece, which, assuming the Judge is not voluntarily or otherwise silenced, could force Rakoff to rake the SEC over the coals of public humiliation and finally acknowledging its crony lap dog status for a group of wealthy Wall Street insiders who consistently have special status with Mary Schapiro and her henchmen.

Quoting from the order released earlier:

"In its August 24th submission, the SEC repeatedly reconfirms its central assertion that "Bank of America's [proxy] statement was materially false and misleading because it indicated to shareholders that Merrill [Lynch] would only make 'required' payments to its employees, such as salary and benefits, but would not pay discretionary year-end bonuses, [whereas] [i]n fact, Bank of Americas expressly had agreed to allow Merrill to pay up to $5.8 billion in discretionary year-end bonuses." Yet the same submission asserts that the SEC, despite its 2006 policy quoted above, decided not to bring charges against culpable individual offenders because all the company's witnesses "stated that they had relied entirely on counsel to decide what was or was not disclosed in the proxy statement." Further, the SEC asserts that it was unable to test this assertion because "Bank of America has not waived the attorney-client privilege [and] [a]s a result, the investigative record does not include any specific rationale as to why the disclosure schedule [revealing the bonuses] or it contents were not disclosed in the proxy statement."

At this point any lawyer readers can proceed to go ahead and vomit, because, indeed, this is the "defense" used by the SEC. Rakoff has a comparable reaction:

"This is puzzling. If the responsible officers of Bank of America, in sworn testimony to the SEC, all stated that "they relied entirely on counsel," this would seem to be either a flat waiver of privilege or, if privilege is maintained, then entitled to no weight whatever, since the statement cannot be tested. In asserting that no waiver occurred, the SEC cites just one case, John Does Co. v. United States[,] which, on first reading at least seems hardly to support such a broad assertion applicable to the fact here."

The SEC now has full permission to request a doubling of its near-$1 billion budget, as apparently the current money it has barely allows it to only afford the services of 3 year old chimpanzees with less than a month's experience with case law. Continuing with Rakoff's evisceration of the SEC's bidetesque approach to all things legal:

"If the SEC is right in this assertion, it would seem that all a corporate officer who has produced a false proxy statement need offer by way of defense is that he or she relied on counsel, and, if the company does not waive the privilege, the assertion will never be tested, and the culpability of both the corporate officer and the company counsel will remain beyond scrutiny."

And the punchline:

"This seems so at war with common sense that the Court will need to be shown more than a single, distinguishable case to be convinced that it is, indeed, the law. It also leaves open the question of whether, if it was actually the lawyers who made the decisions that resulted in a false proxy statement, they should be held legally responsible."

And how does BofA approach this whole problem: why claiming the world will end of course if it were to engage and clear its name. The tried and true approach of the gun against the temple of the financial system works with Obama: why should it not work with the SEC:

"Bank of America's position is that rather than puts its assertions of innocence to the test, it decided to spend $33 million of shareholders' money to settle the case "so that Bank of America would not face the unnecessary distraction of a protracted dispute with one of its principal regulators at a time when the financial industry continues to face difficult challenges stemming from uncertain and turbulent conditions."

But didn't Ken Lewis recently repeatedly state that everything is peachy again? Funny how the same world can be both black and white at the same time, depending on what suits the cause.

Luckily, the "end of the world approach" does not work with Rakoff, who concludes as follows:

"Whatever this chain of vague expressions may mean, if it is intended to suggest that Bank of America settled this case to curry favor with the SEC or to avoid retaliation by the SEC, the Court needs to know the specifics."

Zero Hedge fully hopes that the entire responsible executive committee of Bank of America face criminal prosecution for this SEC co-opted attempt to obfuscate and limit legal recourse in a case that is as simple as night and day. And, of course, that Judge Rakoff continues his pursuit of the SEC's complacency in seeking anything even vaguely resembling an equitable disposition for BAC's shareholders/taxpayers, with the end result being that the SEC should either dramatically change its entire modus operandi, be disbanded, or that the executives at the SEC responsible for this fiasco voluntarily step down before the wave of public anger turns against this blatant example of all that is wrong with the crony SEC-Wall Street machine.

Full Judge Rakoff Order attached.

 

 

 

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Tue, 08/25/2009 - 18:42 | 48128 Project Mayhem
Project Mayhem's picture

Wow.   *cues the Front Line Assembly

Wed, 08/26/2009 - 00:25 | 48441 Assetman
Assetman's picture

Smackdown seems like a very appropriate word at this point.

Tue, 08/25/2009 - 18:46 | 48134 SWRichmond
SWRichmond's picture

As I recall, when this settlement was announced ZH readers were quick to point out that taxpayers would be the ones paying the fine.  Props to Judge Rakoff for noticing as well.

Wed, 08/26/2009 - 00:49 | 48455 agrotera
agrotera's picture

I still don't understand how the BAC/MER deal has gotten by since BAC wanted to pay half of what they 'ended up' paying for MER.

Is there any case being filed against paulson/bernake for strong arming and forcing the Merrill deal...the big defense they have is Lewis saying that in the end they didnt force him to the deal, but i still think that is the statement of someone with Stockholm Syndrome.

God bless this judge.

Tue, 08/25/2009 - 18:49 | 48137 lizzy36
lizzy36's picture

Tyler, pure poetry - "bidetesque" what a fantastic word.

 

Tue, 08/25/2009 - 18:50 | 48140 passive_lurker
passive_lurker's picture

For so long, these 'hear no evil, see no evil, speak no evil' settlements were mere bylines on page 8 of the WSJ, never to be questioned.

The charade is being slowly exposed.  The SEC is being held up as a fool and lapdog.

Hopefully the truth -whatever it is- will see the light of day.

Tue, 08/25/2009 - 18:50 | 48141 waterdog
waterdog's picture

Wow, things are moving at a fever pitch. The best thing for everyone in front of this judge to do is to plead stupidity. Tell a one time lawyer that the cause of the problem was a lawyer?

Tue, 08/25/2009 - 18:54 | 48145 pigpen
pigpen's picture

I called Judge Jed's office to thank him for his ruling and investigation - his number is 212-805-0401 and his assistant was very kind.

Tue, 08/25/2009 - 19:05 | 48164 lizzy36
lizzy36's picture

Judges are supposed to be independent. Don't call them and praise them for deciding a case a certain way. It is insulting (or should be) to any serious legal scholar/judge  (of which this judge appears to be). 

 

 

Tue, 08/25/2009 - 19:10 | 48169 pigpen
pigpen's picture

Lizzy, have we met somewhere? Independence hmmm I am not the only quixotic person on the board.

Cheers

Tue, 08/25/2009 - 19:33 | 48191 lizzy36
lizzy36's picture

perhaps, i am the bitchy one :)

i am a romantic cynic, who despite all evidence to the contrary, wants (needs) the judiciary (or some member thereof) to be independent. More than anything i just want to believe that one powerful person will not subvert the very process's that used to define the USA, to accommodate the "fragile financial system".

Cheers.

Tue, 08/25/2009 - 19:36 | 48194 pigpen
pigpen's picture

Agreed, I prefer to be a skeptical optimist.

Tue, 08/25/2009 - 21:02 | 48273 Big Al
Big Al's picture

Guess you don't believe in the old saying that:  A judge is nothing more than a lawyer who knew the right politicians.

Tue, 08/25/2009 - 21:12 | 48278 spekulatn
spekulatn's picture

Well done, Big Al.

 

"MARK IT ZERO, DUDE"

Tue, 08/25/2009 - 21:55 | 48318 lizzy36
lizzy36's picture

The problem is i absolutely believe that old saying. 

But I would like to believe that every once in a while, justice is something more than merely preconceived means used to justify an end.

Wed, 08/26/2009 - 08:25 | 48263 overpath (not verified)
overpath's picture

And in terms of all the FED bailout/funding/securitization programs primarily directed at WS's finest thieves, I find it fascinatingly disgusting

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Tue, 08/25/2009 - 18:54 | 48146 deadhead
deadhead's picture

Once again, thank you Judge Rakoff for upholding principles of law as well as what I would view as common sense.

And to President Obama...you should be absolutely ashamed of what is going on with the SEC, the one which is being run by YOUR hand chosen commissioner.  This is not change nor is it transparency.

 

Tue, 08/25/2009 - 18:57 | 48148 D.O.D.
D.O.D.'s picture

Oh very nice, SEC should be raked over the coals, and forced to serve bread in the lunch lines that are not to far off, with signs around their necks that state... SEC RULEZ!!!

Tue, 08/25/2009 - 20:26 | 48239 Howard_Beale
Howard_Beale's picture

Perhaps they should be forced to eat the near green fuzzy bread being served.

Tue, 08/25/2009 - 18:57 | 48149 monmick
monmick's picture

"... before the wave of public anger turns against this blatant example of all that is wrong with the crony SEC-Wall Street machine."

Oh, how I wish this had even a slight possibility of happening...

Tue, 08/25/2009 - 18:58 | 48150 Anonymous
Anonymous's picture

Great article Tyler, Do you have and address for judge Rakoff that maybe the public could send him thanks or kudo's? Frank

Tue, 08/25/2009 - 23:57 | 48396 John Self
John Self's picture

I'm with lizzie/Lucy.  Leave the judge alone.  To send kudos is to suggest that the law cares what you think.  At least in the way things are supposed to work, it does not.

Wed, 08/26/2009 - 00:39 | 48444 Assetman
Assetman's picture

What might be more effective is sending Rakoff's response to this fiasco to your Congressman. 

They need to know that the American people despise the pitiful job the SEC is doing to protect investors-- and that we shouldn't have to rely on fine people like Judge Rakoff to equitably penalize crooks like BofA.

If the SEC cannot do its most fundamental job, it doesn't need to exist.  One carefully crafted bill can take care of it.

Tue, 08/25/2009 - 18:58 | 48151 pigpen
pigpen's picture

We must understand the lexicon to communicate in this new world.

Change = Status quo

Transparency = Obfuscation

Tue, 08/25/2009 - 19:54 | 48209 TumblingDice
TumblingDice's picture

Ignorance = Strength

Tue, 08/25/2009 - 19:06 | 48152 Miles Kendig
Miles Kendig's picture

or that the executives at the SEC responsible for this fiasco voluntarily step down before the wave of public anger turns against this blatant example of all that is wrong with the crony SEC-Wall Street machine.

 

But before they do they should also face Judge Rakoff for duplicity as a public agent.

Tue, 08/25/2009 - 18:59 | 48153 Anonymous
Anonymous's picture

i am afraid another judge is going to have a boating, flying, driving, eating, bathing, crossing the street accident but it surely is a joy to read the ruling....

Wed, 08/26/2009 - 08:25 | 48265 overpath (not verified)
Tue, 08/25/2009 - 19:06 | 48165 Anonymous
Anonymous's picture

Thanks pigpen for the number, I called as well and the assistant was glad to pass along my thanks to the judge, Frank

Tue, 08/25/2009 - 23:49 | 48417 Anonymous
Anonymous's picture

Please don't do that. It's extremely insulting to the judge. Further, most judges I've known are busy and extremely understaffed. (IOW, their staff already has far to much real work to do.) Answering your call will just take away scare resources that, at least in this case, would have probably been far better used.

Tue, 08/25/2009 - 19:06 | 48167 Anonymous
Anonymous's picture

The reality is that the President Narcissus sold his soul, his family's soul and sold-out the electorate to the
AIPAC family for the privilege of being the black guy living in the white house --- he should be more sensitive than most to slavery --- but that is what he is doing to this country --- he is an insult to the blacks, and, at best, a bobble-head to the tribe..............and too friggin in love with himself to see it..........Ab Mikva said in a
Chicago Tribune article that he is "our first jewish president" .... I say that is why things continue to be so friggin fucked up ....they must not sell mirrors in this country any more........

Tue, 08/25/2009 - 19:20 | 48172 Cheeky Bastard
Cheeky Bastard's picture

nvmd, wrong link

Tue, 08/25/2009 - 19:42 | 48197 walküre
walküre's picture

The underlying assumption of your argument is that the President is somehow not who or what he intended to be.

I believe this assumption is wrong. He did not "sell his soul". What you are witnessing is a true reflection of this man's character. What you are seeing is his soul.

A revolution needs money and useful idiots.

Tue, 08/25/2009 - 20:31 | 48242 Anonymous
Anonymous's picture

indeed

Tue, 08/25/2009 - 20:44 | 48257 dnarby
dnarby's picture

You can't sell something you leased.

Tue, 08/25/2009 - 23:28 | 48398 MinnesotaNice
MinnesotaNice's picture

Wonder who is monitoring the 'off the wall' anon's tonight... one just slipped through...

Wed, 08/26/2009 - 00:54 | 48463 agrotera
agrotera's picture

MinnesotaNice, it made me so happy to read your post!  i have been unable to read as much as love to lately, and that has left me with the worry of bank shills infecting this site, and being left unchallenged--it fills my heart with joy to know that you share the same concern! Bravo to you!

Very best to you friend!

agrotera

Tue, 08/25/2009 - 19:15 | 48177 Uros Slokar
Uros Slokar's picture

Not sure where else to add this, but seeing as how a few people have tossed out ideas on improving the site, allow me to indulge myself in some of the same.

Recently I've seen complaints about the comments deteriorating, flamewars, etc. This is unfortunate since the comments are easily one of the best aspects of this site. While I have no trouble with a little free speech, I only have so many hours of the day that I can spend f-ing the dog at work, so I need to cut to the chase. In this vein, I suggest that some type of upvoting/downvoting of comments be instituted, ala Reddit's karma system (which I by no means understand entirely, but which seems a good idea).

 

I don't care how it's done, but separating the wheat from the chaff in the comments should be priority number one. I understand some revision of the policies is underway at the present time, hopefully someone has already thought of this. Keep up the great work everyone, exposing the criminals has never been easier than it is today with the communities that the internet can create.

Tue, 08/25/2009 - 19:31 | 48188 D.O.D.
D.O.D.'s picture

+10

Tue, 08/25/2009 - 20:00 | 48215 Anonymous
Anonymous's picture

it would also be a dream come true to immediately vaporize the posts of certain d-bag poster(s) who constantly use ZH to shill for their crap-assed websites, with all their 'good' "artcles". allowing those posts to remain for a nanosecond is akin to having paris hilton and skanks of her ilk to show up at your (insert solemn, worthy event here).

Tue, 08/25/2009 - 20:28 | 48240 deadhead
deadhead's picture

I feel safe in saying that one of my favorite ZH contributors, Robotrader, would love to have paris hilton and company show up at his place.  We would probably get video clips on his daily market update. 

Tue, 08/25/2009 - 21:14 | 48281 Sqworl
Sqworl's picture

Have his people call my people..I know Paris Hilton!

Tue, 08/25/2009 - 21:24 | 48290 Anonymous
Anonymous's picture

don't forget to invite phil gramm

Wed, 08/26/2009 - 00:16 | 48434 MinnesotaNice
MinnesotaNice's picture

I love Phil... where has he been for the last few days?

Wed, 08/26/2009 - 00:57 | 48465 agrotera
agrotera's picture

me too.

Tue, 08/25/2009 - 20:41 | 48254 Deficient Market
Deficient Market's picture

Oh yeah, that would be good ole Cetin the Cretin, he's really not all there. Used to be a funny fellow when he used to write his own perma-bull articles with a god-complex twist (and no he's not related to Cramer). Now his sites are just junk rss feeds, so yeah, a good system to improve automated removal of his posts would be nice

Tue, 08/25/2009 - 20:14 | 48233 DaddyWarbucks
DaddyWarbucks's picture

No problem. We'll be front running the comments starting next week.

 - Your friends at GS, always glad to be at your cervix!

Tue, 08/25/2009 - 21:19 | 48285 Uros Slokar
Uros Slokar's picture

Thanks guys/girls. It may have been inferred in my post, but obviously this approach requires signing up to ZH.

As for automatically deleting certain posters/spammers/trolls, while I'm more for the censorship BY the masses approach that comes with upvoting/downvoting/karma., on a grander scale, I certainly wouldn't object to TD, Marla et. al. other of our ZH Overlords (Trademarked/Copyrighted - all royalties to be donated to catching these thieving b-tards) editing out members who don't prove themselves "worthy" of belonging to the phenomena that is Zero Hedge.

Now, don't interpret this to mean that we need be in lockstep with respect to our "financial belief systems". Quite the contrary, this site is great because there are such well-written and conflicting opinions which are well-sourced and argued.

What I would propose is only that a member who consistently demonstrates that they are taking away from the discourse, as opposed to adding to it, be subject to removal. I'll leave it to others to determine what exactly would qualify. All I know is that it's like indecency - I can't define it but I know it when I see it!

Tue, 08/25/2009 - 23:00 | 48385 aldousd
aldousd's picture

Of course you're right.

One needn't prove in a court of law that they ought to be banned from posting on a privately owned website. We actually shouldn't get a vote thumbs up or down, and any we do is a gift from the site owners.  Not that it matters what I think (and I mean that literally, since I do not own the site,) but I'm all for the staff having full 100% on a whim discretion to ban or expunge whomever they choose.  Freedom of speech, as some call it, doesn't mean I have the freedom to use 'your stuff' to say what I am free (legally) to say. It just means the government can't pass a law regulating what I do say on my own or public property using my own or public means. Posting on non-government websites, well that doesn't qualify.  

Wed, 08/26/2009 - 01:00 | 48468 agrotera
agrotera's picture

"It just means the government can't pass a law regulating what I do say on my own or public property using my own or public means"....or can they?  I think that is another reason why we are all here, concern over our life, liberty, and the pursuit of happiness.

Tue, 08/25/2009 - 19:18 | 48180 Anonymous
Anonymous's picture

speaking of the SEC I can't help thinking that the singular most important clue as to weather BSC was an engineered collapse can easily be found by revealing those that urged the opening, and then bought up to the gills, those far far out of the money options just a few days from expiration. Possibly the most important event of the 21 century and yet it seems like no one cares to find out who it was and what they knew.

Tue, 08/25/2009 - 19:30 | 48186 Anonymous
Anonymous's picture

the judge....truly a great american in every sense of the word. thank you, judge rakoff...thank you.

Tue, 08/25/2009 - 19:34 | 48192 passive_lurker
passive_lurker's picture

Rakoff brought down Spitzer...sort of.  Nothing to worry about though.

A judge has rejected former New York Gov. Eliot Spitzer's attempt to keep his name out of documents related to the prostitution probe that forced him from office.

Judge Jed Rakoff in Manhattan federal court on Tuesday released a copy of an order he signed last week.

http://www.cnycentral.com/news/news_story.aspx?id=277836

Tue, 08/25/2009 - 19:34 | 48193 TumblingDice
TumblingDice's picture

When is the sec going to start suing itself?

Tue, 08/25/2009 - 19:46 | 48203 mule65
mule65's picture

So they can pay their fines with borrowed taxpayer money?

Tue, 08/25/2009 - 19:54 | 48208 TumblingDice
TumblingDice's picture

That $1 billion dollar budget isn't going to spend itself!

Tue, 08/25/2009 - 21:50 | 48314 Rusty_Shackleford
Rusty_Shackleford's picture

God damn, you gotta' love The Onion.

Tue, 08/25/2009 - 19:42 | 48200 Anonymous
Anonymous's picture

Off topic. For what its worth:

"Jim Cramer Exposed"
http://www.advisorperspectives.com/newsletters09/Jim_Cramer_Exposed-Does...

Now back to the more important musings of the echo chamber.

Tue, 08/25/2009 - 19:49 | 48205 Anonymous
Anonymous's picture

"or that the executives at the SEC responsible for this fiasco voluntarily step down before the wave of public anger turns against this blatant example of all that is wrong with the crony SEC-Wall Street machine."

Are there any proles left to man the rage ramparts on this one? Seems they're all too busy being distracted by other events. Libya terrorist release being the latest. BB being re-nominated can't be counted since the blood sucking vampires over at GS requested it.

The few troops that are left make this effort look like the last stand at the Alamo. Good luck surviving the onslaught of legions of brain hungry zombies.

Wed, 08/26/2009 - 00:50 | 48457 Assetman
Assetman's picture

And you would have thought that adding another $2 Trillion to the deficit projection would have an impact.

Nah, not for MSM.  Apparently, reappointing "Safe-Bet" Ben was the darling of the mastions from Short Attention Span Theatre.

Yet those same bozos in the MSM make a big deal about $200 billion of last second savings only a day or so ago.

Little wonder that blogs are going to eat you dry. 

 

Wed, 08/26/2009 - 08:04 | 48554 deadhead
deadhead's picture

very,very well spoken assetman (as usual I should add!).

I cannot believe how buried the 7>9 trillion deficit story has been.....from the late last friday late afternoon release to Tuesday's official release, this thing has been stuffed in a coffin and deep sixed. unbelievable

 

Tue, 08/25/2009 - 19:52 | 48206 Anonymous
Anonymous's picture

Where was this Judge when all the other investment bank settlements were made in the past few years where a fine equal to a fraction of purported ill-gotten gains were paid and no admission of wrongdoing occurred?

Tue, 08/25/2009 - 20:30 | 48241 deadhead
deadhead's picture

With due respect to you 48206, there are quite a few US District Court Judges.

Tue, 08/25/2009 - 23:28 | 48399 John Self
John Self's picture

... and furthermore, none of them commences the cases in their courtroom.

Wed, 08/26/2009 - 07:04 | 48547 Anonymous
Anonymous's picture

Yes I am aware of this. But it would have been nice for this guy to have been involved in other settlements.

I'm betting in the future Goldman will be sending whispers ensuring Rakoff is not the guy blessing any of their future settlements.

Tue, 08/25/2009 - 20:13 | 48232 My cognitive di...
My cognitive dissonance's picture

Excellent writing TD.

 

Tue, 08/25/2009 - 20:37 | 48252 Anonymous
Anonymous's picture

Judge Rakoff: Marry me.

Wed, 08/26/2009 - 08:25 | 48259 overpath (not verified)
overpath's picture

eing Bullish - no problem with that - but endorsing the Fed and Bernanke ... that's a whole different issue

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Tue, 08/25/2009 - 20:48 | 48262 buzzsaw99
buzzsaw99's picture

Rakoff = Client #10. Abandon all hope of reform, it ain't happening.

Tue, 08/25/2009 - 20:59 | 48270 Anonymous
Anonymous's picture

don't get your hopes up

http://www.accessmylibrary.com/coms2/summary_0286-8902096_ITM

Federal Judge Approves $750 Million Settlement in Fraud Charges against MCI.

"July 8, 2003--Bankrupt telecommunications giant MCI won approval from a federal judge in New York for a $750 million settlement of civil charges that it committed $11 billion in accounting fraud, a ruling that cleared the way for the company to shed billions in debt and become a revitalized competitor.

US District Court Judge Jed Rakoff acknowledged in a 14-page decision that "undoubtedly the settlement will be criticized" by wiped-out investors and "those professed pundits and ideologues for whom anything less than a corporate death penalty constitutes an 'outrage.' "

Tue, 08/25/2009 - 21:13 | 48280 Project Mayhem
Project Mayhem's picture

Nice find, sir

Tue, 08/25/2009 - 21:28 | 48294 deadhead
deadhead's picture

I could be wrong as my memory sometimes fails me, but I think the original settlement was much less than the $750MM and Judge Rakoff bumped up the number significantly. 

Tue, 08/25/2009 - 21:10 | 48277 Gubbmint Cheese
Gubbmint Cheese's picture

I'll say it again, nothing wil be done until the constituents demand it. We are getting close to that point.. but I'm still a skeptic. As such I doubt anything will come of this.. (this is me trying not to get my hopes up..... again)

GC

Tue, 08/25/2009 - 21:31 | 48296 AN0NYM0US
AN0NYM0US's picture

not sure of the relevance but also came across this ruling from Rakoff - the headline is from Bloomberg (seriously)

PartyGaming’s Dikshit Pleads Guilty to Web Gambling

 

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4X4XSXn4aHw

Tue, 08/25/2009 - 21:34 | 48297 robert_paulson
robert_paulson's picture

Rakoff for President 2012.

Tue, 08/25/2009 - 21:53 | 48301 mblackman
mblackman's picture

Where do you dig up all this great stuff Tyler? I always assumed BAC was up to no good no good when they bought CountryWide but that it was just the tip of the iceberg. It made no sense other than to cover up a bad decision. This reveals more of the corporate ethic (or lack thereof) behind the facade.... 

 

Tue, 08/25/2009 - 21:43 | 48306 ShankyS
ShankyS's picture

I know I should believe and trust in the system, but after all of the insane actions of the past - let's stick to the past say, decade - they have left me no choice but to ask the question - How is our government going to manage to fuck this one up and let 'em off of the hook again? If this suit/ruling fails, I'll never be able to trust our government or the justice system again. What a fucking joke our regulators are. They would kick my as for selling a mutual fund that is not in line with some bullshit "investor profile" while they get away with this shit? Must be nice to be a member of the club.

Tue, 08/25/2009 - 21:58 | 48319 Gilgamesh
Gilgamesh's picture

I made a mistake in picking up BAC puts when the stock spiked up in May (well, maybe the mistake was not taking quick profits).  Subsequently added to the mistake by doubling the put position out of sheer anger of what the company is getting away with - surely it has to be exposed soon?  Now, considerably later - I am contemplating just bailing; taking the remaining value left off the table... and acknowledging that it's beyond 'nice to be a member of the club.'  When you are a founding member of the CFR club, you are untouchable.

Tue, 08/25/2009 - 21:52 | 48317 Rusty_Shackleford
Rusty_Shackleford's picture

Why yes, I am sick of using toilet paper.

Tue, 08/25/2009 - 22:07 | 48327 tom a taxpayer
tom a taxpayer's picture

Will Judge Rakoff be another Judge Sirica?...another Time magazine Man of the Year?

 

Here ye, Here ye! Law and order in the court! The Honorable Judge Jed Rakoff presiding! 

 

"John Joseph Sirica (March 19, 1904–August 14, 1992) was the Chief Judge for the United States District Court for the District of Columbia, where he became famous for his role as the chief judge presiding over the Watergate scandal. He rose to national prominence during the Watergate scandal when he demanded that President Richard Nixon turn over his recordings of White House conversations."

"Sirica's involvement in the case began when he presided over the trial of the Watergate burglars. He did not believe the claim that they had acted alone, and persuaded or coerced them to implicate the men who had arranged the break-in. For his role in Watergate the judge was named TIME magazine's Man of the Year in 1973."

http://en.wikipedia.org/wiki/John_Sirica

 

I hope this is only the first of many Wall Street cases that the good Judge Rakoff will preside over. I hope that Judge Rakoff, like Judge Sirica, will follow the money, and unravel the Wall Street criminal enterprise that is gravely damaging the Nation.    Godspeed Judge Rakoff!

Wed, 08/26/2009 - 02:05 | 48502 Miles Kendig
Miles Kendig's picture

tom a taxpayer, it would appear as though more and more folks who are loyal to the institution (in this instance, justice) are coming forth just when they are needed most.  I am gaining confidence that as these times progress more folks within various institutions will stiffen their resistance to being used as an agent of those who conflate loyalty to the institution with loyalty to those that are appointed to lead institutions. Powerful ideas have an galvanizing way of resisting corruption.

Wed, 08/26/2009 - 02:14 | 48506 agrotera
agrotera's picture

you remind us all of something we can look forward to Layne, thank you!

Wed, 08/26/2009 - 08:07 | 48556 deadhead
deadhead's picture

it's good to hear this Layne....I am becoming a bit more optimistic on this particular front as well.  eventually, the politicians (primarily those on the legislative end) will pick up on this and start eating their own.

Tue, 08/25/2009 - 22:12 | 48330 Terminal Frost
Terminal Frost's picture

More Judge Rakoff, less Zimbabwe Ben.

Tue, 08/25/2009 - 22:23 | 48339 Anonymous
Anonymous's picture

It is verry, verrry good to read Judge Ratkof's ruling.

A "Man for All Seasons"

Maybe our republic is safe after all.

Thu, 08/27/2009 - 20:45 | 48425 My cognitive di...
My cognitive dissonance's picture

Reading this was as sobering as a bidet in the middle of winter. 

 

Wed, 08/26/2009 - 01:48 | 48494 Anonymous
Anonymous's picture

Read "The Final Days of Merrill Lynch" in the Atlantic

http://www.theatlantic.com/doc/200909/bank-of-america

for more on how Paulson, Bernake and Ken Lewis screwed over BofA shareholders and taxpayers.

Wed, 08/26/2009 - 01:49 | 48495 Anonymous
Anonymous's picture

Read "The Final Days of Merrill Lynch" in the Atlantic

http://www.theatlantic.com/doc/200909/bank-of-america

for more on how Paulson, Bernake and Ken Lewis screwed over BofA shareholders and taxpayers.

Wed, 08/26/2009 - 01:51 | 48497 Anonymous
Anonymous's picture

Once again tonnes of hulabalooo before the numb ending where nothing happens as all that was going to happen, happened prior to this numbing conclusion. Want to know what happened prior, send informants to where the ultra wealthy vacation to find out who was and wasn't there. Maybe they'll also tell you how many suitcases, hookers, and colombian rolls changed hands.

Wed, 08/26/2009 - 02:33 | 48512 defender
defender's picture

Did anyone else notice the sudden outburst of bidet adverts from google?  Cracks me up.

Wed, 08/26/2009 - 08:23 | 48559 Optimystic
Optimystic's picture

I smell a class action against the law firms and their E&O carriers.  After all, it's their fault, huh?  LOL.

Wed, 08/26/2009 - 09:16 | 48590 57-71
57-71's picture

BofA taking a page from Cheney:

The lawyers gave us an opinion and we went with it. And surely you can't prosecute a lawyer for giving an opinion.

What portable commode will these people wish to dump on the public head next.

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