Checks balanced

I'm having a hard time playing optimistic after that last post, but I caught a good story today too...

In spite of Citigroup's success in exchanging re-election donations for feigned ignorance at the executive branch, the judicial put a bitta smackdown on their asses today.

The SEC, who is appointed by representatives of the people to keep the stock market humming along for the good of the people made a deal with Citigroup. This deal was to close the books on their part in a massive toxic mortgage scam. The deal looks like this:
Citigroup sold $1 BILLION in bunk mortgages to its customers. Knowing they were bunk and unlikely to be re-paid, Citi bet against them.

The investors lost $700 MILLION.

Citi earned $160 MILLION. (Good to be 'in' on it!)

In exchange for this blatant disregard of both ethics and rules, the SEC was going to charge Citi with negligence and fine them $285 MILLION.

Negligence... Well, I guess they should've tried harder to not screw their own customers over.

Luckily, this plea deal from the Executive had to be checked over by the Judicial. And, apparently, Citi was unable to bri*ahem* lobby Federal Judge Jed "Not on My Watch" Rakoff into seeing this as a fair and reasonable punishment for a billion dollar scandal.

(Think maybe the fine was fair? Let me take a shot at illustrating this. When a man is arrested with a kilo of heroin, they don't just take 250 grams of it and tell him he is a *bad* man, that he should have a nice day, and if he is ever in need of a job he's always welcome at the station. No. They take ALL the heroin, everything the guy owns and throws him in jail for at least a significant portion of his life.)

Judge Rakoff decided he thought maybe a closer look was necessary. He said:
"The court concludes, regretfully, that the proposed Consent Judgment is neither fair, nor reasonable, nor adequate, nor in the public interest"
"Although this [settlement] would appear to be tantamount to an allegation of knowing and fraudulent intent... the SEC, for reasons of its own, chose to charge Citigroup only with negligence"

Now THAT is some good solid judgin'...

THIS is whyipaytaxes.
read more:Citigroup-SEC $285m toxic mortgage deal rejected(bbc)