• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Judge Rakoff Humiliates Mary Schapiro By Nullifying Citi MBS Settlement, Calls It "Neither Fair, Nor Reasonable, Nor In Public Interest"

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Mon, 11/28/2011 - 13:03 | 1921306 apberusdisvet
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Dear Judge:

Stay away from Grassy knolls

Mon, 11/28/2011 - 14:11 | 1921584 12ToothAssassin
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Judge Rakoff: Man's Game.

Mon, 11/28/2011 - 13:08 | 1921334 Rainman
Rainman's picture

...and stay out of little airplanes

Mon, 11/28/2011 - 13:10 | 1921346 knukles
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... and hot tubs



Paul/Rakof 2o12

Mon, 11/28/2011 - 14:52 | 1921727 Cyrano de Bivouac
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And do thorough background checks of potential sex partners.

Mon, 11/28/2011 - 13:32 | 1921379 The Limerick King
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It's time for Schapiro to go

Her corruption is starting to show

Her bias has shown

That she should be known

As the Bankster Cartel's little Ho


Mon, 11/28/2011 - 13:53 | 1921510 Careless Whisper
Careless Whisper's picture

This post focuses on the Rakoff - Shapiro cat fight but misses the real point. From the Opinion, Citi is accused of selling uninformed clients some shitty securities and then shorting them for profit. The clients lost $700 million. The Judge rejected the plea deal because Citi didn't admit or deny anything. The Judge says Citi must admit their illegal behavior, if any, if they want a deal. No more "they neither admit or deny" crap!

Mon, 11/28/2011 - 14:19 | 1921608 MsCreant
MsCreant's picture

Now that is what I call the "Careless Whisper of a good friend!"

Good catch.

Mon, 11/28/2011 - 14:08 | 1921576 DaveyJones
Mon, 11/28/2011 - 13:22 | 1921387 LedMizer
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and Fort Marcy Park.

Mon, 11/28/2011 - 14:07 | 1921568 steelrules
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Parking garages at night.


Go Judge Go!

Mon, 11/28/2011 - 13:13 | 1921351 wisefool
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deleted. double post.

Mon, 11/28/2011 - 13:19 | 1921373 stopcpdotcom
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And avoid going for walks in the woods.

Mon, 11/28/2011 - 13:38 | 1921452 potatomafia
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Crap, the joke is still on us.


BOA will not be around by the summer of 2012!!!  Take the money now, or get nothing later!


Kidding aside, this whole thing is a freekin circus.

Mon, 11/28/2011 - 13:03 | 1921307 Wixard
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Hah I love it

Mon, 11/28/2011 - 13:25 | 1921406 midtowng
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How dare Rakoff do his job! Doesn't he know that by doing his job he makes everyone who isn't doing there job look bad?

Mon, 11/28/2011 - 13:45 | 1921481 Tommy5454
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Hard to believe, but good news. Any chance we can bring a class action against the HFT owners and have it assigned to him? How can you have markets with enormous volatility like this every day and then have it sit within basically .25% for hours on sucha  day. Hilariously sad.

Mon, 11/28/2011 - 13:03 | 1921309 GeneMarchbanks
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Public Interest 1 Transnational Banking Cartel 16t

Mon, 11/28/2011 - 13:10 | 1921311 hedgeless_horseman
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Don't be foolish.  Like all judges, Rakoff doesn't give a shit about the people, only the brotherhood.  These lawyers aren't done feeding, so the lawyer wearing the black dress will keep the racket going.

Rule 1:  The civil courts are a system of the lawyers, by the lawyers, and for the lawyers.  Rule 2:  Judges are lawyers.

Mon, 11/28/2011 - 13:18 | 1921366 Alienated Serf
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usually, yes.  but every once in awhile, a judge can stand up.  when this happens, it is generally reversed on appeal.

Mon, 11/28/2011 - 13:24 | 1921395 NotApplicable
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Question is, why?

Mon, 11/28/2011 - 13:35 | 1921410 hedgeless_horseman
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Why?  Ever meet a cop that does not speed?  No.  Why?  Because self-regulation never works.

Is the Federal Reserve Bank effective regulating other banks?  No?  Well neither is the Bar effective at policing other lawyers, and our government is filled with, you guessed it, lawyers.

Mon, 11/28/2011 - 14:05 | 1921561 weinerdog43
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The trouble with blanket assertions saying everyone is doing X is that they are always wrong.  There is always going to be an exception.  All you have to do to prove you are wrong is to google your state's bar assoc. website where you can see who has been disbarred or suspended.

Mon, 11/28/2011 - 14:46 | 1921582 hedgeless_horseman
hedgeless_horseman's picture

...often disbarred or suspended for going against the brotherhood.

Blanket assertations and prejudices are indeed problematic for any conspiracy or racket. I believe it is called the weakest link syndrome.  

Here is your homework assignment, Space Monkeys.  Sit through and listen closely to a typical monday or friday of status conferences, hearings, and docket call (generally lawyers only and no clients present) at a civil court while keeping my thesis in mind, then make your own decision who's interests come first based on what you hear.  It is different than what is said when the clients and/or jury are present, and there is generally no record kept.  Don't forget your camouflage; wear a dark suit, carry a briefcase, and act like you are important.  If they think you and everyone else is a lawyer you may be amazed by what you hear.

Remember, keep these two rules in mind and it will all make perfect sense:

Rule 1: The civil courts are a system of the lawyers, by the lawyers, and for the lawyers.

Rule 2: Judges are lawyers.

Also remember that mediators and receivers are usually lawyers, too.


Mon, 11/28/2011 - 14:56 | 1921746 GeneMarchbanks
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'Here is your homework assignment, Space Monkeys.  Sit through and listen closely to a typical monday or friday of status conferences, hearings, and docket call (generally lawyers only and no clients present) at a civil court while keeping my thesis in mind, then make your own decision who's interests come first based on what you hear.  It is different than what is said when the clients and/or jury are present, and there is generally no record kept.  Don't forget your camouflage; wear a dark suit, carry a briefcase, and act like you are important.  If they think you and everyone else is a lawyer you may be amazed what you hear.'

That sounds aweful, do I have to? I... I have a queazy tummy.

In all honesty, hh, is it worth it trying to convince people? Not worth it IMO. 

Mon, 11/28/2011 - 15:04 | 1921799 MachoMan
MachoMan's picture

They did away with the docket call here years ago...  it was an unnecessary madhouse...  you go and sign up and leave and come back when you get called or expect for it to be your turn...  pretty simple.

Mon, 11/28/2011 - 15:03 | 1921790 MachoMan
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Although the law profession is about the only de jure self regulating profession left, I'd say that governmental regulation is also a miserable failure...  e.g. the financial industry (de facto self regulating).  You're pissing in the wind with this argument as it ultimately relies upon central planning to perform market functions... 

Of course judges take care of lawyers...  it's just like policemen having the "blue shield".  Very rarely will a lawyer get sanctioned, in court, for misbehavior...  sometimes you get a case dismissed...  sometimes gross malpractice will get a lawyer referred to the ethics committee, but usually everything is papered over...  hell, even opposing counsel will sometimes bend over to help a lawyer stave off a gut lock malpractice claim.  However, this bending over backwards will generally not be at the expense of justice...  (but probably a few dollars here or there).

I guess I'll posit that, in the end, for all its faults, the system generally works...  given we have opted for an adversarial system, there exists the possibility for a gap in war chests and, thus, the outcome of the case.  However, this is more to do with misconception than actual practice, given even the best attorney has an uphill battle with a bad case.  In the end, it is mostly the cases themselves that determine the outcome, not the attorneys...  hence why the system is successful.  Don't get me wrong, I'd love to toot my own horn and advocacy skills, but in the end, I'll trade knowing anything about the law for a favorable fact pattern...

In regard to prosecution of financial crimes...  this has been a miserable failure...  but that has to do with the executive branch in general, not the legal profession.  If you want to see some slack get picked up, then look at the civil side of the cases based upon the same fact patterns as a criminal case would have been...  plenty of "civil prosecuting" going on there...


Mon, 11/28/2011 - 13:04 | 1921313 J 457
J 457's picture

Are judges allowed to run for President?

Mon, 11/28/2011 - 13:11 | 1921350 Conrad Murray
Conrad Murray's picture

Ron Paul's AG? Let Judge Nap go straight to the Supreme Court.

Mon, 11/28/2011 - 13:20 | 1921377 J 457
J 457's picture

It was a joke- jackass.

Mon, 11/28/2011 - 13:05 | 1921315 Flakmeister
Flakmeister's picture

Twist and burn.... bitchez!

Mon, 11/28/2011 - 13:07 | 1921325 PulauHantu29
PulauHantu29's picture

Bless him!

Mon, 11/28/2011 - 13:16 | 1921329 LawsofPhysics
LawsofPhysics's picture

Now the real fun starts as more of the rich insider kleptocrats quickly realize that they are not rich enough to be above prosecution.

The poor better start eating the rich soon, because these folks are going to be eating each other shortly, fucking bring it.

But I digress, will anything actually happen, that is the real question, pass the popcorn anyway.

Mon, 11/28/2011 - 13:09 | 1921330 Cognitive Dissonance
Cognitive Dissonance's picture

Please please PLEASE don't try to get my hopes up that the justice system, after centuries of enabling the robber barons and corruption, is finally going to get a handle on the modern day version of the Ponzi.

I'd rather believe in Santa Claus. Santa is much more likely to be true.

Mon, 11/28/2011 - 13:12 | 1921352 GeneMarchbanks
GeneMarchbanks's picture

I reciprocate those sentiments exactly, even the Santa bit.

Mon, 11/28/2011 - 14:02 | 1921547 Canaduh
Canaduh's picture

It is much, much too early to abandon cynicism, my friends.

Mon, 11/28/2011 - 19:28 | 1923313 Al Gorerhythm
Al Gorerhythm's picture


To abandon cynicism is to adopt the eye of the romantic.  

Romantic poet, Eliza Cook (1818-1889) depicts a world I used to live in.

Eliza Cook: "Why should we strive, with cynic frown, to knock their fairy castles down?"

I will take some liberty in re-arrangeing it adopting the cynical view.

We should strive, with cynic frown, to knock their fairy castles down.

Another of her romantic quotes included: 

"Who would not rather trust and be deceived?"  My answer to that is, I would.

However, the placing of my trust in the hands of judges and the regulators, in protecting individual rights and upholding the constitution of the republic has been romantically misplaced which has led me to adopt the cynics view, with which I retort; "Fool me once, shame on you. Fool me twice; shame on me".

Rakoff and the system have been found wanting on more than one occasion. If proven wrong, (I won't hold my breath) I'll have my jaundiced eye checked for deficiency, ..... after the trial.

Mon, 11/28/2011 - 13:20 | 1921378 Temporalist
Mon, 11/28/2011 - 15:08 | 1921832 MachoMan
MachoMan's picture

Considering he's already gotten a lot of public sentiment and then proceeded to trash any goodwill generated in previous case(s), I'd say you're probably right...  but, the neat thing about corrupt systems is that not everyone is corrupt...  and, on any given day, you can get your card pulled by a moral actor.  Never know.

Mon, 11/28/2011 - 13:08 | 1921331 RacerX
RacerX's picture

Impressive [/vader_off]

Mon, 11/28/2011 - 13:08 | 1921332 monopoly
monopoly's picture

"Nothing really changes until everything finally crashes."

Perfect, just perfect. And BAC really wants a 4 handle. I know it. Merry Christmas Moynihan!

Mon, 11/28/2011 - 13:08 | 1921336 Tsar Pointless
Tsar Pointless's picture



Public interest?

Goddamn commie!

Oh, sorry, Sandy15. Gosh-darned commie!

Mon, 11/28/2011 - 13:10 | 1921345 tony bonn
tony bonn's picture

the conclusion of the article is correct....corruption marches on....all rakoff did was throw the public a bone and a wink....last time i called schapiro a cunt and will refrain from doing so this time but she is most emphatically a crooked slime ball...

Mon, 11/28/2011 - 13:22 | 1921389 topcallingtroll
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And a nasty cunt.

Mon, 11/28/2011 - 13:39 | 1921457 terryfuckwit
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Mon, 11/28/2011 - 13:12 | 1921353 Rat King
Rat King's picture

The Public: "We want the Truth"

Citigroup and SEC: "You cant handle the truth"

Us: "Its too late, we have ZeroHedge"

Mon, 11/28/2011 - 13:12 | 1921354 Milton Waddams
Milton Waddams's picture

It really, really is time for Schapiro to resign after this gross public smackdown by a member of the court who has just chided her for not doing precisely what she is paid millions to do.


Um, this tyler may be a bit naive.  The millions are compensation for precisely not doing, perhaps?  Shes a fucking beast on penny stock scams though.  Don't you dare try to take some backwater yokels for a couple g's.  lol

Mon, 11/28/2011 - 13:12 | 1921355 slewie the pi-rat
slewie the pi-rat's picture

tears of regret flowing from the bench...

how poignant!

even m.shapiro is smart enuf to delay the trial by forging another agreement

w/ taxpayer bailout money flowing like rivers of silver, swollen by storms of fiat, into a sea of inflation, play on!

Mon, 11/28/2011 - 13:15 | 1921359 SmoothCoolSmoke
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Reaction in C stock?  Zilch.

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