David Takes On The Porn-Addicted Goliath: Egan-Jones Countersues The SEC

Tyler Durden's picture




 

A month and a half after the SEC took a much-deserved break from watching taxpayer-funded pornography, and stumbled on the scene with its latest pathetic attempt to scapegoat someone, anyone, for its years of gross incompetence, corruption, and inability to prosecute any of the true perpetrators for an event that wiped out tens of trillions in US wealth, by suing Egan-Jones for "improperly" filing their NRSRO application in what was a glaring attempt to shut them up, the only rating agency with any credibility has done what nobody else in the history of modern crony capitalist-cum-socialist America has dared to do: fight back. We have only three words for Sean Egan:  For. The. Win.

From the just filed lawsuit (District of Columbia, 12-cv-00920)

As reported widely, the damage recently done by the large issuer-paid firms, which have a virtual monopoly on the ratings industry, is almost incalculable. Congress has found that the large issuer-paid firms were instrumental in creating inflated and erroneous AAA ratings, for billions in profits to those firms, which fueled the ABS and collateralized debt obligation (“CDO”) market; which, when the market collapsed in 2008, it led to an estimated trillion dollars in losses and the largest financial crises since the Great Depression. The vast majority of the 2004-2007 ABS and CDO debt rated AAA by the large issuer-paid firms is now graded as junk.

As the Congressional Findings published in the Dodd-Frank Act make clear:

In the recent financial crisis, the ratings on structured financial products have proven to be inaccurate. This inaccuracy contributed significantly to the management of risks by financial institutions and investors, which in turn adversely impacted the health of the economy in the United States  and around the world. Such inaccuracy necessitates increased accountability on the part of credit ratings agencies.

As this Complaint makes unmistakably plain, a credit ratings agency (“CRA”) that the SEC chose to hold “accountable” since 2008 is Egan-Jones -- the one small independent ratings firm that actually warned the capital markets of dangerously over-rated ABS and CDO debt and has long been a valuable independent bellwether of true credit quality. The Administrative Proceeding is the latest in a series of SEC actions which are designed to diminish and marginalize Egan-Jones while supporting and maintaining the status quo of an issuer-paid ratings agency monopoly in direct, indeed, striking contravention of specific Congressional direction in both the Reform Act and the Dodd-Frank Act. While the SEC targets Egan-Jones for alleged infractions which have not affected a single rating or investor, the SEC has not suggested that it will ever take any real, proportional action against the large issuer-paid firms for issuing profitable inflated ABS and CDO ratings which brought about America’s economic crises.

...

Evidence of the SEC’s bias against Egan-Jones and towards the large issuer paid firms, includes, among other matters detailed in this Complaint, the SEC’s decision to ignore the important division between its regulatory inspection and examination functions on the one hand, and non-public investigative and enforcement functions on the other, by designating members of the Office of Compliance, Inspections and Examinations (“OCIE”) as officers of the SEC’s Division of Enforcement (“Enforcement”) while the OICE staff still were performing actively OCIE regulatory and examination functions.

Egan-Jones and Mr. Egan therefore seek declaratory and injunctive relief to remove the Administrative Proceeding to this federal court. Such removal is necessary to prevent the violation of Egan-Jones’ Due Process, Equal Protection and First Amendment rights. This Enforcement Action, if allowed to proceed in an administrative forum, would deprive both Egan-Jones and Mr. Egan of their right to a jury trial and other critical procedural safeguards available in our judicial system, including, but not limited to, the ability to mount defenses and obtain evidence in support thereof relating to the unfair and disparate treatment of Egan-Jones by the SEC, with no rational basis, and evidence relating to the motive for the SEC to do so; the SEC’s improper motive in bringing this action including the denial or marginalization of Egan-Jones’ content and voice in the marketplace; and the maintenance and continuation of the status quo conflicted issuer-paid ratings model in contravention of Congressional direction. For the reasons set forth in this Complaint, Egan-Jones and Mr. Egan come before this Court and respectfully ask for declaratory and expedited judicial relief in the form of removal of the Enforcement Action to this Federal Court.

* * *

If we could only interject our fondest wish: make this a fight to the death.

 

Full filing:

 

And our personal message to the SEC:

 

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 06/06/2012 - 21:27 | 2501801 tony bonn
tony bonn's picture

defiance, resistance, protest...occupy needs to return to the streets

Wed, 06/06/2012 - 21:34 | 2501822 strannick
strannick's picture

Dont forget the CFTC when apportioning scorn to useless/captured regulatory agencies.

Wed, 06/06/2012 - 21:40 | 2501847 UP Forester
UP Forester's picture

Fuck me?

NO!  FUCK YOU!!!

Wed, 06/06/2012 - 21:43 | 2501860 LetThemEatRand
LetThemEatRand's picture

These fuckers are systematically trying to take away our right to a jury trial through these "administrative" proceedings, run by oligarchs for the oligarchs.   Go Egan Jones!!!!

Wed, 06/06/2012 - 22:02 | 2501886 Pure Evil
Pure Evil's picture

What makes those assholes think they have the right to due process, equal protection, and any first admendment rights. I don't see anyone of the other mundanes living in the USSA enjoying those Constitutional protections.

Where have they been since 2008, and the brother got elected to the "WHITE" house.

Didn't they learn any lessons from the GM debacle.

The only reason I can see as to why they're being swatted around like a fly is that they refused to accept a fartbook friend request to swap midget tranny porn and child pornography with the SEC.

Wed, 06/06/2012 - 22:06 | 2501911 Pladizow
Pladizow's picture

"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a Moral code that glorifies it." - Frederic Bastiat.
 

Wed, 06/06/2012 - 22:59 | 2502045 jeff montanye
jeff montanye's picture

since 2008 pure evil?  don't you mean since 2001?  the bushobama administration has been seamless in most everything except sex.  their public statements about gays and abortion differ (i suspect their private actions are not nearly so dissimilar).

Wed, 06/06/2012 - 23:02 | 2502060 Pure Evil
Pure Evil's picture

Well, actually we could go all the way back to the founding fathers and the politicians that followed them.

My actual point was that rule of law in contracts took a beating with the GM bondholders getting screwed just so Obama could save union jobs.

Wed, 06/06/2012 - 22:12 | 2501912 LetThemEatRand
LetThemEatRand's picture

They are a small firm.  A small business.  They are not the Man you are fighting.  They are in fact fighting the Man.   You reveal your true intentions and your lack of regard for that to which you claim to be an advocate with your racial overtones.  

 

Wed, 06/06/2012 - 22:15 | 2501941 Pure Evil
Pure Evil's picture

Racial overtones?

What you talkin' bout Willis?

 

Would it be these colored overtones?

Wed, 06/06/2012 - 22:18 | 2501950 LetThemEatRand
LetThemEatRand's picture

What, you think white guys aren't fucking you even harder than the guy in the White House? 

Please ni....

Wed, 06/06/2012 - 22:25 | 2501968 Pure Evil
Pure Evil's picture

White guys don't know how to fuck anyone over, only pure Alabama black snake is gonna find its way to tickle your uvula.

Why do you think all the white women want to be with the big nig.

Look at Obamies momma, pure white trailer trash that loved African cock.

Wed, 06/06/2012 - 22:29 | 2501977 Harlequin001
Harlequin001's picture

I always thought they were the white gals that couldn't get a real man...

Wed, 06/06/2012 - 22:32 | 2501979 LetThemEatRand
LetThemEatRand's picture

You see it the other way, but the greatest thing about America is exactly what you see as the worst thing (trailer trash having a bi-racial relationship leading to a guy getting elected President).  In any other country, you need to be born into privilege.  This is why outfits like the Mises Institute are so incredibly dangerous.  They believe the opposite.   Too bad Kissinger and whomever else got to O.

Wed, 06/06/2012 - 22:42 | 2502004 Pure Evil
Pure Evil's picture

I think Global Hunter below said it best:

 

Just a "a fucking reptillian space monkey".

 

Of course I would've said space gorilla, but why bicker.

Wed, 06/06/2012 - 22:47 | 2502015 LetThemEatRand
LetThemEatRand's picture

I think Hunter S. Thompson said it best:  America... just a nation of two hundred million used car salesmen with all the money we need to buy guns and no qualms about killing anybody else in the world who tries to make us uncomfortable.

 

Wed, 06/06/2012 - 23:28 | 2502107 Cortez the Killer
Cortez the Killer's picture

EPIC, EPIC FAIL

trailer trash greater than the Mises Institute???????

Permanent troll status for you

 

Thu, 06/07/2012 - 09:41 | 2503270 fuu
fuu's picture

WTF?!?

Wed, 06/06/2012 - 22:49 | 2502018 thatthingcanfly
thatthingcanfly's picture

Been hearing that bullshit all my life. Finally looked it up a few years ago and learned what I suspected all along: there is no statistically significant difference between penis sizes among the races. The myth of African sexual superiority is an insulting farce designed to demoralize white males, and disenfranchise them from their own tribe's women.

Wed, 06/06/2012 - 23:47 | 2502135 JOYFUL
JOYFUL's picture

+1000 for observational excellence.

Most every little ting that passes for 'media communications' is designed to demoralize white males, as part of a programme of twisted revenge bein brewed n stewed by sulky pseudo-hebraic khazarians since getting kicked outta their spiders' nests in the Volga swamps some 1000 years ago...

their terror of big, bad Varangians in phallic-like sailin ships that they hopped over portages to reach all the way down to the Tigris is now so engrained in the sionist dna that from the moment they are hatched these dual-citiizened varmints scheme ways to beat whitey on the only battlefied they haf a half a chance of winning on...

the war of communications has been won by the wackos with the genocidal gene germ....whitey is hunkered down under a rain of arrows, posioned by plastics, pharmaceuticals. widescreen t(error)v(ision)s, gmo junk food and the chemtrail death mists all owned and operated by the klepocratic korporo khazarian brood whose most fervent dream is to make it with whitey's women /// after stealin all his loot...

left to ourselves, blacks, browns, reds n whites would all git along famously, cause everybody knows this earth was designed as an abundant garden of delights for the human bean to watch over and protect....never ever been a shortage of joy and pleasure till the sour sitizens of sionist mi-s-anthropy took sentre stage in our schools, movie houses and living rooms with a playbook designed to demoralize and demonize the Europoid race...

we all in the same boat, livin in a world with just one hope:

terror statelet of israhell and it's moneychanging backers will tip the lever for the trap door underthemselves and fall way down to the fiery depths from whence they were bred to fall down upon us like an evil rain of malice and envy.

*what, already a down arrow to yur fine comment? guess who's watchin!

Thu, 06/07/2012 - 00:57 | 2502320 Bolweevil
Bolweevil's picture

I might not hit bottom, but I'll scrape the heck outta the sides. Pure poetry Joyful +1

Thu, 06/07/2012 - 03:12 | 2502527 Andy Lewis
Andy Lewis's picture

Fuck off and die, Nazi filth.

Thu, 06/07/2012 - 04:33 | 2502586 JOYFUL
JOYFUL's picture

nazi?

R U referring to that C20th movement of sionist led and inspired dupes who killed off most of the actual 'jews' of Europe as part of their mad plan to create a frankist-sabbatean socialist paradise in the middle of Palestine? ...and then created silly straw puppet 'neo-nazi' fringe groups in the States as part of  their campaign to marginalize the majority population there?>Umm, sorry, wrong number -I don't dabble in racial hegemonist politics, I'm more into unity of the human race...

Andy, is English yur second language, or are yu an actual ashkenazi tasked with reading from a very tired script?!??

Either way, I think yu have stumbled into the wrong forum Andy....we out dissumlationists like yurself here, and then cremate their remains...

try harder?

Thu, 06/07/2012 - 00:08 | 2502193 CrazyCooter
CrazyCooter's picture

You mean ...

http://www.targetmap.com/viewer.aspx?reportId=3073

... which is one of many info graphics (or data tables) on the subject?

Personally, I don't care. My old man's old man's old man immigrated from Poland. Six foot six he was. And once killed a neighbor's borrowed mule by striking it with his fist between its eyes for not working.

Normans.

I am a bit shy of that, but my brother and his son are not. Keep yer charts. I think ladies are smart to find polite Texans who can palm basketballs and have problems finding Justin work boots in their size.

On that note, the hardest science on the subject suggests a ratio between specific fingers as the best predictor.

http://www.livescience.com/14891-finger-length-ratio-penis-size.html

Data geeks; there is one in every crowd.

Regards,

Cooter

Thu, 06/07/2012 - 07:13 | 2502717 neidermeyer
neidermeyer's picture

@thatthingcanfly ,

Your research is wrong , differences exist ... all I can say is don't ever expect a normal sized US male (white or black) to use any Japanese produced prophylactic without feeling WAY MORE than a wee bit constrained...

Thu, 06/07/2012 - 10:10 | 2503439 WillyGroper
WillyGroper's picture

True. Do you mean proud?

Thu, 06/07/2012 - 03:08 | 2502522 Andy Lewis
Andy Lewis's picture

Fuck off, KKK filth.

Thu, 06/07/2012 - 04:46 | 2502595 JOYFUL
JOYFUL's picture

Kosher Kleptocratic Klan? 

Tha's weird, I thought Cooter was a regular guy from somewhere up north> yu sure Andy?

Wed, 06/06/2012 - 22:22 | 2501959 greyghost
greyghost's picture

future reference: next time, the we are out of oil crowd starts in again.....ask them if they know how to spell "the bazhenov"?

Wed, 06/06/2012 - 23:04 | 2502066 jeff montanye
jeff montanye's picture

out of cheap oil.

Wed, 06/06/2012 - 22:09 | 2501924 Harlequin001
Harlequin001's picture

'I don't see anyone of the other mundanes living in the USSA enjoying those Constitutional protections.' as you can see, a framework already exists for anyone to take up the mantle if you dare.

Fact is there are too many whimps who would rather pay a speeding fine than go to court and defend themselves properly. That does not mean that you have no rights, only the lack of fortitude to demand and defend them.

Wed, 06/06/2012 - 22:15 | 2501946 Pure Evil
Pure Evil's picture

I've gone to court to fight it. Whenever you go to court they always add court costs to the ticket.

Wed, 06/06/2012 - 22:19 | 2501951 Harlequin001
Harlequin001's picture

Did you win?

and by the way, when I say 'you', it's not personal...

Wed, 06/06/2012 - 22:19 | 2501954 LetThemEatRand
LetThemEatRand's picture

If they added court costs, Pure Evil lost.  

Wed, 06/06/2012 - 22:20 | 2501957 Pure Evil
Pure Evil's picture

Your a turd and don't know it, go float in somebody else's septic system.

Wed, 06/06/2012 - 22:36 | 2501988 LetThemEatRand
LetThemEatRand's picture

Sorry.  Sore spot?  Asshole. 

It's "you're a turd."  You're a turd.

Wed, 06/06/2012 - 22:47 | 2502014 Pure Evil
Pure Evil's picture

I think you've been looking in the mirror too long.

Been noticing a big brown pile between the shoulder blades and a stench to knock you off your feet?

Maybe if you went and wiped between the ears the world would start smellin' a little better.

Better yet, just wrap your lips around some Alabama black snake.

Wed, 06/06/2012 - 22:51 | 2502030 LetThemEatRand
LetThemEatRand's picture

Are you projecting?  By which I mean -- are you actually really gay and you just can't admit it to yourself?  It's okay.  A lot of prominent people are that way.  One day, you will find peace.  Peace, asswipe.

Wed, 06/06/2012 - 22:54 | 2502034 Pure Evil
Pure Evil's picture

Yep, I'm projecting my big Alabama black snake right up your lilly livered white ass which will soon to be tickling your uvula and giving your tongue a taste of the same crap you blog on this website.

 

Wed, 06/06/2012 - 23:01 | 2502055 LetThemEatRand
LetThemEatRand's picture

No, Deliverance.  I will not squeal like a pig for you.  At least we all know what you are about now.  

Wed, 06/06/2012 - 23:04 | 2502065 Pure Evil
Pure Evil's picture

Oh, you'll squeal and you'll like it.

 

Sooooeeee! Here little piggy.

Wed, 06/06/2012 - 23:07 | 2502075 jeff montanye
jeff montanye's picture

i think you two need to take this outside or get a room.

Thu, 06/07/2012 - 00:11 | 2502204 jez
jez's picture

Boring, boring, boring. Both of you.

One of them is going to mention Hitler, any second now.

Thu, 06/07/2012 - 04:58 | 2502606 Acet
Acet's picture

This thread is now officially Goodwined.

Good thing too, it was starting to sound like a fight between 5-year-olds.

Thu, 06/07/2012 - 09:15 | 2503152 mendigo
mendigo's picture

Not calling anyone in particular a troll because I would not know, but it seems to me that there are "members" why either intentially or because it is thier nature take the discussion off course. This is an effective way to disrupt the site which no doubt some would like to do. My suggestion to prevent this would be to avoid taking it personal, be brief and dont reply if the discussion is going off-track

Wed, 06/06/2012 - 23:29 | 2502108 Burnbright
Burnbright's picture

Troll Fights!

Wed, 06/06/2012 - 22:26 | 2501974 Harlequin001
Harlequin001's picture

and by the way, you hit the nail on the head with that comment, 'they always add court costs to the ticket'. Yes they do, and most people would rather pay the fine and grumble than run the risk of increased costs and obtain justice, but that is no different than the SEC letting these people off with a plea bargain and a small fine against the company when you think about it. The SEC should not have the option to settle out of court because that is too easily abused in favour of the well connected.

You still have rights, but they aren't always cheap...

If you're not guilty you're not guilty, and you should fight, which makes this an excellent move in my view...

 

Wed, 06/06/2012 - 22:39 | 2501999 Pure Evil
Pure Evil's picture

But, what if you are guilty. Do you still go to court and lie your way through? I must admit, every ticket I got was well deserved.

Wed, 06/06/2012 - 22:46 | 2502013 Harlequin001
Harlequin001's picture

Then you can't really complain for getting a bill for wasting everyone's time trying to deny what you did...

but good try anyway...

Wed, 06/06/2012 - 22:50 | 2502026 Pure Evil
Pure Evil's picture

I wasn't trying to. I had a friend that would go to court and try to lie his way out of it. It generally worked for him. He spent more time coming up with outrageous excuses, and some of the times I've been in court I've seen some people come in and just outright claim it wasn't there fault or some such shit.

But, some of the tickets I got required a court apperance.

Do NOT follow this link or you will be banned from the site!