Hey, just like BofA!
Another settlement, another DK from a judge:
“A federal judge refused to approve the Securities and Exchange Commission’s $75 million settlement with Citigroup Inc. over the bank’s disclosure of subprime-mortgage problems, saying she is “baffled” by the proposed pact.
The move by U.S. District Judge Ellen Segal Huvelle represents another challenge for the SEC as it tries to punish financial institutions blamed for the financial crisis.
The judge, striking a frustrated tone, fired several questions at the SEC, among them why it pursued only two individuals in the case and why Citigroup shareholders should have to pay for the alleged sins of bank executives.”
My issue with the proposed Citi settlement was that it is a) too small; and 2) too limited in executives covered. There were many more people involved in Citi’s $40 billion misstatements than the two execs cited here.
Oh, and U.S. District Judge Ellen Segal Huvelle seems to have the same fundamental misunderstanding about punishing shareholders that Judge Jed S. Rakoff of Federal District Court in the Bank of America case did. Shareholders in corrupt companies are supposed to be punished . . .
Punishing Shareholders? Nonsense (August 3rd, 2010)
Judge Won’t Approve Citi-SEC Pact
WSJ, AUGUST 17, 2010