Big bank SEC settlements: Toothless face-savers?

The banks have the option to admit that were fraudulent or deny it. After what the have done to people, they have the chance to do that???

To admit or deny -- that is the question -- or one of them anyway, that the SEC will have to address when they respond to Judge Jed S. Rakoff's review of the regulator's recent settlement with Citigroup. Although Citi has agreed to pay $285 million and make minor reforms, the bank is neither admitting nor denying that they failed to properly disclose the risks of mortgage-related investments to clients in the run up to the housing crisis.

But why would Citi agree to such a payment and reforms if they didn't violate regulations? This conundrum is not a new one for Judge Rakoff and one he raised in an SEC settlement case two years ago involving Bank of America . In that case, although Bank of America had originally neither admitted nor denied the violations, when the case came under scrutiny by Rakoff, Bank of America went ahead and denied.

So Rakoff asked a reasonable question: why would a bank pay out shareholder dollars for something it had denied committing? If the bank did the deeds as the SEC contended, why weren't individuals being punished in line with SEC guidelines, he had asked?

management.fortune.cnn.com...

You spelled bastards wrong.

reply to post by Carseller4


I know I did. I can't post the actual word in a title, and what does that have to do with the post?

Originally posted by Carseller4
You spelled bastards wrong.

Spelled wrong, yes, but more appropriately spelled for the banksters.....

reply to post by Mythfury


Big Business can get away with anything, including murder..
This is simply their cheap way out which shuts down the court case yet leaves all the criminals in the clear to carry on as before..
You or I would be forced to admit guilt and face the consequences...

reply to post by Carseller4

Yeah its like calling everyone dumb-masses

Well, they are a bunch of turds anyway, so S/F.

Now, you are saying you want them to admit they were wrong, apologize, and never do it again?

Might as well tell that to the turd in your toilet for all the good that will do.

'out of court settlements' and/or 'agreements' preclude many a criminal offense from being properly documented and adjudicated ... with felonies and worse becoming unmentionables due to the same. [non-disclosure agreements, and the like]

follow the monies behind and to whom benefits from such for further 'answers'.



until such time that the Real 99% awake and stand up ... it'll be business as usual, imo.

until then, and even afterwards, may [insert deity here] help us.

:shk:

they won't meet you in court, they'll merely milk you dry in legal fees and ultimately 'settle' outside the judicial system for pennies on the dollar, with regards what it might have cost them otherwise.

... and better for their part ... in that no legal precedence has been set nor realized throughout.

they're not stupid.