Jed Rakoff is well known to frequent readers of Zero Hedge: he is the judge who nearly brought down the SEC settlement with Bank of America over the whole bonus non-disclosure issue two years ago, and where Bank of America effectively acted under the duress of Hank Paulson and Ben Bernanke. Granted at the end of the day he sided with the status quo., but this may be his chance to redeem himself. Just out from Bloomberg:
- CITIGROUP'S $285 MILLION SEC SETTLEMENT QUESTIONED BY JUDGE
- CITIGROUP JUDGE ASKS PARTIES TO JUSTIFY FAIRNESS OF SETTLEMENT
- SEC CLAIMED CITIGROUP MISLED INVESTORS IN $1 BILLION CDO
To be sure, nobody dared to question the same wrist-slap settlement that JPM coerced the SEC into "enforcing" on it some months back, but Citi has always been far less connected. So are we about to witness yet another spectacle whereby the SEC's attempt to promptly brush yet another major CDO malfeasance under the rug is exposed for all to see? Or will this latest criminal action finally see the light of day and it will be far more difficult for Citi to neither "admit nor deny guilt"? Stay tuned.