Rogue Judge Thinks Guilt & Innocence Actually Matter: Citigroup Settlement Rejected

This week federal judge Jed S. Rakoff rejected a $285 million settlment between Citigroup and the SEC. The rejected settlement concerned Citigroup’s selling of toxic¬†mortgage¬†securities to investors back in 2007. Allegedly, Citigroup knew these were bad investments so they bet against their own customers resulting in $160 million in profit for Citigroup and $700 million in losses for investors.

Judge Rakoff seemed particularly irked that the SEC’s settlement agreement did not require Citigroup to admit any guilt or wrongdoing regarding this matter.

Or perhaps the judge was just angry upon realizing he had zero use for the weather balloon he was going to receive with all his Citi “Thank You Points”.

3 thoughts on “Rogue Judge Thinks Guilt & Innocence Actually Matter: Citigroup Settlement Rejected

  1. Yes! He is 100 percent an activist judge since he had the guts to go against what the conservatives believe. Just kidding, sort of, obviously it was a joke playing on the “activist” claim any time a court goes against the backwards conservative thinking. This was a gutsy decision by the honorable Rakoff and all REAL americans owe him a debt of gratitude.

  2. Just watched 60 Minutes last night. They talked about the toxic mortgage situation – it’s appalling that corporations/the top people there are allowed to get away with this. They knew there was an issue, signed statements saying they had all the checks and balances in place, then not long after had to get 45 billion in bail out money. AND I bet the people at the top still got bonuses somehow. How do people like this become leaders of anything, let alone huge corporations?

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