#OWS Cheers As DEFIANT Judge STOPS Obama From SELLING IMMUNITY To Wall Street [View All]

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Judge Rakoff: “Truth is Confined to Secretive, Fearful Whispers”



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" In an audacious move against Citigroup, the SEC, and the practice of "selling immunity", a Federal Judge in NY abruptly put the brakes on a settlement agreement proposed between the Obama Administration and another giant Wall Street firm accused of betting against their own investors. Judge Jed Rakoff sent a message today to Wall Street and the Securities Exchange Commission that may multiply in shockwaves. Rakoff refused to approve a $285 million dollar payout to drop charges against Citigroup for defrauding investors without admitting any guilt.




With prosecutions for bank fraud today at a 20 year low, the Occupy movement has focused new attention on questionable glad-handing between Wall Street titans and federal officials who are supposed to keep them honest.On his way out in 2008, President Bush issued a DOJ directive that greenlighted the practice of "deferred prosecutions" which gave DOJ and SEC desk jockeys incredible latitude to craft immunity deals in secret in exchange for millions in fines and promises to be better. But you might be disgusted to learn that these huge fines only went to the government after being split with attorneys for the banks. The sale of immunity prevented victims from suing for damages. This is why Rakoff's bold stand is so consequential - any finding of guilt opens up the floodgates for investors to bring civil suits.





- Rakoff was critical not only of the "insufficient" amount offered as restitution, but the lack of transparency and especially the idea of shirking accountability for serious misconduct.This closely parallels a line in the OWS proclamation released Sept. 27 which notes Wall Street firms "determine economic policy, despite the catastrophic failures their policies have produced and continue to produce." The banks, who have till now enjoyed a plethora of judges rubber-stamping anything approved by the SEC, will now have to fashion a different deal with the SEC to resubmit to Rakoff, negotiate a limited admission of guilt directly with Rakoff, or try to prove their innocence at trial.




It is not known whether Rakoff would accept any settlement that did not make Citi acknowledge guilt and thereby allow individual investors to bring damage suits. Wide public recognition and debate of Rakoff's rejection here will also be keenly observed by other judges, banks, the Obama Administration, banks and particularly the understaffed SEC, exposed here for serially taking harmful shortcuts.





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http://www.opednews.com/articles/OWS-Cheers-As-Defiant-Jud-by-Gustav-Wynn-111128-986.html

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