SEC, Citigroup may win appeal in fraud case

Comments (8)
GA_Chris wrote:

A judge tried to impose Justice, but lucky that Citi and the toothless SEC were able to buy another

Mar 15, 2012 1:35pm EDT  --  Report as abuse
JBltn wrote:

The article didn’t give any indication of why the appeals court might overturn the lower court’s decision except that, “appeared to have failed to give proper deference to the SEC,” SAY WHAT??
Citi Group sold $1 BILLION of risky MBO’s to investors while “going short against the debt’ they just sold, resulting in $700 MILLION dollar loss [to investors] and the settlement required Citi-group to settle for only $285 MILLION and not have to admit culpability for the fraud they perpetrated was not in the public interest.

Help me understand why the lower court ruling isn’t sustained? Why doesn’t Citi-group have to make restitution for all their investor losses’? Explain why Citi-Group management and brokers weren’t indicted for felony fraud?

I’ve known that America doesn’t have a ‘justice’ system but I thought we still had a legal system that followed some rules…

Mar 15, 2012 2:49pm EDT  --  Report as abuse
tmc wrote:

Those who have the money make the rules.

Mar 15, 2012 4:00pm EDT  --  Report as abuse

@JBltn… don’t worry about Citi Group! Fear not. The SEC has teeth and isn’t in the pocket of the banks. They totally bagged Martha Stewart and had her locked up good for her transgressions. They’re serious. Really.

Mar 15, 2012 4:04pm EDT  --  Report as abuse
rocque wrote:

Judge Jed Rakoff is my hero. I wish we had more like him.

Mar 16, 2012 1:47am EDT  --  Report as abuse
ljyoung wrote:

The logic expressed by the higher court is akin to saying, “We have been in the habit of hanging a person convicted of stealing a loaf of bread and see no pressing reason to discontinue it”.

To say that Citigroup might never have admitted guilt had it not had the option of a ‘no contest’ manoeuver and further that had one convicted Citigroup of wrongdoing such a judgment “… would in most cases undermine any chance for compromise.” again uses bad precedent as the excuse for continuing injustice.

A check of the august toadies on the appeals board panel seems like a worthwhile endeavour.

Mar 16, 2012 2:08am EDT  --  Report as abuse
guestp wrote:

Other major banks including Goldman Sachs Group Inc and JPMorgan Chase & Co in the last two years also reached large settlements with the SEC without shanghai apartment admitting wrongdoing.

One Citigroup employee, Brian Stoker, was also charged by the SEC

Mar 16, 2012 9:26am EDT  --  Report as abuse
TheUSofA wrote:

It’s unfortunate that men like Rakoff are not just a minority, they are a complete rarity. Many had a feeling that good buddies Citibank and the SEC were going to be able to move the case to another court and find someone to rubber stamp the decision.

-Thursday’s decision “begs the question of whether these judges paid -any attention to the role both institutions played in the recent -financial crisis,” said Frank Partnoy, a professor at the University -of San Diego School of Law.

-”It is a major setback for anyone who thought the courts might stand -up for the rights of investors when the SEC does not,” he added.

Judges, politicians and “regulators” working for the banks.

Democracy as it should be only exists on paper. Money buys Democracy. Not even checks and balances can right the ship because the courts are useless. Bush gutted the SECs regulatory power and culture and it stuck. Lest we not forget Scalia and Co of the Supreme Court stating that corporations are people and money is speech.

Republicans traditionally favor and lobby for banks. Obama however also is keen to smooth the way for them. Seems like they’ve won folks and in the meantime will accumulate more wealth to buy more influence. The revolving door between Wall Street and Washington seems to be set in stone.

We are all muppets.

Mar 19, 2012 3:06pm EDT  --  Report as abuse
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