It’s funny, and not ha-ha, but so many people (and you’re related to at least a few of them) spend so much time keeping up with stock market numbers, rises and falls in the Dow, the price of gold other such particularly ridiculous prisms through which to see the world that when you hear/read someone talking sensibly about the the absurd way this “system” is treated and treats itself it can be, well, refreshing.
A federal judge angrily blocked Citigroup’s proposed $285 million settlement over the sale of toxic mortgage debt, excoriating the top U.S. market regulator over how it reaches corporate fraud settlements.
Rakoff called the Citigroup accord too lenient, noting that the bank was charged only with negligence, neither admitted nor denied wrongdoing, and could avoid reimbursing investors for more than $700 million of losses. Private investors cannot bring securities claims based on negligence.
“If the allegations of the complaint are true, this is a very good deal for Citigroup; and, even if they are untrue, it is a mild and modest cost of doing business,” the judge wrote.
The judge basically told the SEC and Citigroup to shove it, interrupting one of the very commonplace, move-along, nothing-to-see-here disgraces taking up valuable time in courthouses across the country. The settlement without any admission of guilt is one of the more nefarious innovations to ever come along, allowing companies to pay their way out of crimes, prep the memory hole and begin the process again as soon as possible. It’s all too cozy, and no one seems to notice anymore. There are no business reporters who take the side of anything but corporations and business. It’s amazing but even a judge paying attention realized that the wash was still dirty after this rinse cycle and decided to plop the whole load back in the machine, hopefully this time with some bleach. They still continue to call the aggrieved parties ‘investors’ as though it’s somehow the ultimate distinction. It’s really just a description of people who deserve to be ruled by corporations.