Circuit Vacates Rakoff Denial of Citigroup/SEC Settlement

, New York Law Journal


The Second Circuit panel said Judge Rakoff applied the wrong standard when he blocked the consent decree, which he criticized as the latest in a series of cases in which the SEC alleged serious securities fraud for which the defendant admitted no wrongdoing.

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What's being said

  • A. Ridrigues

    Finally a jurist who doesn‘t want to rubber stamp a "plea bargain" that takes out all the teeth in an SEC enforcement case and lets theand ilty walk away scot free! I applauded the judge‘s efforts to stop all the phony, cost if doing business punishments being handed out as if a fire sale was going on. Finally SOMEONE would have to admit guilt and pay a real price. But apparently the club members win again. A toothless government prosecution looks more like oral sex than a painful penalty that might deter future crimes and hold real people responsible, not bloodless, spineless, and impenetrable cororate entities. Their victims are real. The defrauded feel pain. Why not the perpetrators? Just another example of how the entire legal system, including the Federal Judiciary is by, of and for criminal corporate America. Judge Rakoff is a true HERO for refusing to silently standby while the biggest criminals in the country and the most useless part of the Executive branch parade a "consent decree settlement" that is nothing but fluff, smoke and mirrors, ultimately paid for by all of us victims. The govt bails out the banks so they don‘t have to lend anyone money any more. They cause the collapse and are punished/ rewarded by the Executive branch and its all made to appear legit by the Judiciary. The judges who overturned Judge Rakoff‘s ruling are part of the problem. Once again it only proves that old adage, "Give a lawyer a briefcase and he or she will, or they will, steal more money than any criminal with a gun, (or with a PAC lobby, or ad agency or Twitter feed!) When indictments are unsealed on a Monday and the Corporate criminals enter into a consent decree paying 20 BILLION U.S. dollars in fines on Wednesday, how long will it be before their entire house of cards collapses, and Wall Street looks like Main Street? Banks and CVSs, BPs and 7-11s on every corner. An American "spring" will make Beverly Hills look like Beirut, and there won‘t be enough gated communities to go round. Give Judge Rakoff a medal and the rest of the co- conspirators early retirement. They‘re all already working for the "big firms." Let them leave now and collect their 7 figure paychecks they clearly have already earned! The rest of America can kill each other over minimum wage arguments. That should keep us confused and busy!

  • John Lentini

    They only took 16 months to overturn the order. I wonder how many millions in legal fees were billed in that time period.

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