Is there a need for transparency about the financial markets and should the SEC be responsible to reveal wrongdoing?
Judge Reject Citigroup Settlement With SEC
A federal judge has rejected a $285 million settlement that Citigroup reached with the Securities and Exchange Commission.
Yes transparency and disclosures is important for people to decide who is best.
So far Citigroup has been exposed as hypocrites and why the Glass-Steagall Act undone by President Bill Clinton proved to be disastrous.
Wikileaks was not needed to expose the corrupt and toxic behavior of Democrats and Republicans who benefit from the current situation.
A 60 Minutes report exposed how US elected officials can become wealthier while in office and thus ignoring many of their constituents.
I will share a disclosure.
Attempting to understand the surrounding and personality around us will never be easy hence it is why I sometimes feel I have to be careful because some people want others to be loyal but not return the favor.
I lost a job in 2010 partly because I forgot to be discreet.
I feel empowered by sharing this:
Research the public and private interactions before admiring and supporting people and organizations.
We also need to respect dealing especially with domestic enemies.
Criticizing some organizations has become taboo that contradict the Freedom of Expression along with the rest of the US Constitution.
People and organizations censor, delete or reply with insults to what they oppose instead of intelligent exchange of information.
We ought to never fear to be who we really are … others will see and gravitate more readily towards us … openly we need to discreetly share ourselves, our faults with others truly shows good character in a person.
Some have and still have lives who profession may never allow them to reveal themselves for a myriad of reasons.
I think what Judge Rakoff (who is also the lead judge in the Madoff case) is most concerned about here is how a firm can pay a fine of this size, and not admit guilt publically. He has gotten a lot of attention by bringing the SEC up short just when this matter seemed to be a done deal, for just negotiating a settlement behind closed doors and not bringing these matters to a full trial. The SEC claims it does not have the resources or staff, or even the mandate to do so. It has, over the years, avoided bringing these infractions to a judge or a jury, and merely settled for a fine. They proceeded this way with Goldman, despite their deliberate and well known involvement in putting the US economy into a nuclear winter. Oddly, Citibank, which committed the same infraction Goldman did, was supposed to get off more lightly and with less publicity. That may not happen now.
I have been following the Madoff case on the Blooomberg Law podcast, and I can tell you Judge Rakoff is someone who deserves our respect.
The Citibank and Goldman cases may involve criminal fraud.
The FBI is responsible for creating the criminal fraud referrals for the Justice Department. Bush had reduced the FBI staffing to the point where it could no longer effectively perform this criminal referral function. Obama never fixed this fatal oversight. The FBI needs to be back on the case. We are witness to the “Greatest Financial Crime in the World History.”
See the link:
Actually, its the SEC that refers to the US Attorney’s office, but in any case, nothing is going to trial because the SEC doesn’t want to.
The SEC does have the ability to do criminal referrals, but the SEC focus is primarily on civil penalties. The FBI’s primary focus is criminal referrals, as demonstrated in the S & L crisis.
Here is an exerpt from the NY Times (April 14, 2011), referring to the FBI:
” …the bureau’s criminal division created a plan to investigate major banks and lenders. Robert S. Mueller III, the director of the F.B.I., approved the plan, which was described in a memo sent in spring 2008 to the bureau’s field offices.
“We were focused on the whole gamut: the individuals, the mortgage brokers and the top of the industry,” said Kenneth W. Kaiser, the former assistant director of the criminal investigations unit. “We were looking at the corporate level.”
Days after the memo was sent, however, prosecutors at some Justice Department offices began to complain that shifting agents to mortgage cases would hurt other investigations, he recalled. “We got told by the D.O.J. not to shift those resources,” he said. About a week later, he said, he was told to send another memo undoing many of the changes. Some of the extra agents were not deployed.”
see the link:
True, but as usual we need to remember that CONGRESS writes the laws, the Prez just gets to sign them for full force of law. We can blame Clinton for signing the thing, but those knuckleheads in Congress (Gramm/Leach/Bliley ?) really deserve the major lumps of scorn.
maybe the penalties need to be slightly harsher…..like allowing full federal takeover of said offending companies and breaking it up into tiny little pieces, and oh yeah the feds get to keep all the profits from the sales. (Yes I am evil like that 😉
NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!