Judge Rakoff Is Back: Questions Fairness Of Citigroup's $285 Million CDO Settlement With The SEC

Tyler Durden's picture

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GeneMarchbanks's picture

Citi continues unharmed...

... criminal enterprise that is.

Gubbmint Cheese's picture

Remember.. 50% haircuts do not trigger a default. Nothing will come of this..

just shut up and take your medicine

 

NotApplicable's picture

Well, it isn't like words have any true meaning in a world run by criminals.

FunkyMonkeyBoy's picture

Off topic,

 

But, f**k me... fascism has well and truely arrived in the good old USSA:

http://www.nypost.com/p/news/local/nypd_sergrants_threaten_to_sue_wall_4...

It's gone way beyond surreal.

LongSoupLine's picture

Who gives a fuck...Citi is DEEP in the pockets of ALL that write and enforce the law.  Nothing will happen.

YOU CAN'T USE A CROOKED AND BROKEN SYSTEM TO FIGHT SOMETHING WITHIN THE SAME SYSTEM!!!!

Popo's picture

...which is why the road to salvation leads through anarchy.

 

NotApplicable's picture

A.k.a. self-government. As long as people refuse to be responsible for their own life, instead delegating it to a criminal cartel, this will never end.

slaughterer's picture

Citi?   Isn't that that stock that is up over 8% today?

rumple23's picture

Sounds like to me the judge is trying to get a second bite out of the apple

 

Ruffcut's picture

The rackoff will backoff, when they whisper in his ear that anymore funds going to the settlemnet reside in his pension fund. Story over.

slaughterer's picture

I wish Judge Rakoff worked in Europe and the ISDA. 

Mr Lennon Hendrix's picture

C up 9%

So then this would be a _______ opportunity.

jcaz's picture

LOL-  Citi paying the toll again.....  They're just another quasi-agency by now....

Pity that my group structured all those CMO's for Citi back in 1991-  honest, officer, these were all plain vanilla.....

Who knew that Citi would ramp it up to 11?  Idjits.....

slaughterer's picture

Fuck it, I am buying the dollar here.   

slewie the pi-rat's picture

i can see you belong here!

so, hi!

molija6's picture

Rakoff of course more famous for his role in the Den of Thieves narrative representing Marty Siegel...

PaperBear's picture

Dr. Abuzaid Omar Dorda,the senior Libyan official, a former United Nations ambassador for Libya

http://libyasos.blogspot.com/2011/10/important-campaign-concerning-libya.html

currently being held and tortured by NTC members, his life being in grave danger.

AlaricBalth's picture

Amicus Brief regarding Citigroup. Very interesting reading. The SEC is implicated in glossing over the charges against Citi executives.

http://www.thecorporatecounsel.net/nonMember/08_10_lernermemoin.pdf

"The SEC’s Complaint alleges what amounts to a securities fraud on the part of unnamed
persons who, de facto, intentionally materially misrepresented the reported assets
and earnings of Citigroup. Putting aside Amicus’ contention that the culpable individuals
should pay whatever the SEC seeks (assuming the amount is appropriate to the
wrongdoing), Amicus believes that the Consent Judgment should be further modified to
provide for meaningful non-monetary relief."

NotApplicable's picture

Who owns this man?

loveyajimbo's picture

We'll see if his name is really Red Jackoff, if he caves on this one too...  Where is that vile, corrupt human tumor Eric Holder in all of these monster ripoffs??

jjsilver's picture

NOTICE TO ALL PUBLIC SERVANTS: Honor your oath of office.

The only legitimate power held by government is power that is delegated by we the people.

If we delegate that authority, we still retain that authority.

We can revoke that authority at any time.

unununium's picture

Haven't you heard?  The government is the enemy.  They are why you are poor.

Never mind that the government is the only thing standing between these criminal organizations and total world domination.  Never mind that your exercise of the rights the founders fought and died for is the only thing they fear.

Just keep chanting.  The government is the enemy.

JR's picture
Matt Taibbi, in Why Isn’t Wall Street in Jail? that appeared in the March 3, 2011 issue of Rolling Stone put it like this in the subhead: "Financial crooks brought down the world's economy — but the feds are doing more to protect them than to prosecute them."  Here’s an excerpt:

 

Nobody goes to jail. This is the mantra of the financial-crisis era, one that saw virtually every major bank and financial company on Wall Street embroiled in obscene criminal scandals that impoverished millions and collectively destroyed hundreds of billions, in fact, trillions of dollars of the world's wealth — and nobody went to jail. Nobody, that is, except Bernie Madoff, a flamboyant and pathological celebrity con artist, whose victims happened to be other rich and famous people.

The rest of them, all of them, got off. Not a single executive who ran the companies that cooked up and cashed in on the phony financial boom — an industrywide scam that involved the mass sale of mismarked, fraudulent mortgage-backed securities — has ever been convicted. …

Invasion of the Home Snatchers

Instead, federal regulators and prosecutors have let the banks and finance companies that tried to burn the world economy to the ground get off with carefully orchestrated settlements — whitewash jobs that involve the firms paying pathetically small fines without even being required to admit wrongdoing. To add insult to injury, the people who actually committed the crimes almost never pay the fines themselves; banks caught defrauding their shareholders often use shareholder money to foot the tab of justice. "If the allegations in these settlements are true," says Jed Rakoff, a federal judge in the Southern District of New York, "it’s management buying its way off cheap, from the pockets of their victims."

Ned Zeppelin's picture

"Granted at the end of the day he sided with the status quo., but this may be his chance to redeem himself."

Fat chance.  Delay gives the illusion that things are not firmly under control. Today's equities rally demonstrates smoke and mirrors is very effective.  Seems to me all is in order.  Full speed ahead. 

Loose-Tools's picture

But,but, but ... Citi's banksters love their clients! They love them so much that they want to have anal sex with them!

Manny's picture

So if someone robs a store for 1000 dollars and gets a plea bargain agrrement where they have to pay 285 dollars in fine and not even have to admit guilt.

I wonder whether there will be the exponential increase in number of  people willing to take up this profession.