Posted on 12/29/2011 9:17:50 PM PST by Rabin
Judge Jed Rakoff has rejected the SEC’s proposed wrist slap of Citibank for selling mortgage-backed securities it knew to be of poor qualify. Effectively, what he did was join this complaint with SEC’s complaint–filed at the same time as they filed the proposed Citi settlement–against a Citi employee, Brian Stoker, in which the SEC explicitly alleged that Citi knew what it was doing when it dealt shitty securities it intended to short. By doing so, Rakoff imposed the same trial process on this complaint as on Stoker. Effectively, he’s saying, “If you’re prepared to prove that Stoker knew what he was doing in selling shitty MBS, you’re prepared to prove that Citi did too.” But the rest of his ruling focuses more generally on his demand that the SEC stop treating him–and federal judges generally–as tools
(Excerpt) Read more at emptywheel.net ...
Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon by Gretchen Morgenson and Joshua Rosner.
I heard an interview with the authors. Lots of people named in the book and they got a lot of 'splainin' to do to save their Fannie.
“Lots of people named in the book and they got a lot of ‘splainin’ to do to save their Fannie.”
When the truth comes out, I wonder how many past and present Politicians will go to jail?
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