Wednesday, August 18, 2010

Is The Goldman Sachs-SEC Settlement In Trouble?

A federal judge has refused to approve the Citigroup settlement with the SEC without more information. See "Judge won't approve SEC-Citigroup settlement over risky mortgages without fuller information" by Marcy Gordon, AP Business reporter. Also see The Wall Street Journal article, "Judge Won't Approve Citi-SEC Pact" by Kara Scannell.

From Scannell's article:
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.
The judge's refusal to rubber stamp the The Citigroup-SEC settlement is a recent reminder of the things that are wrong with the SEC-Goldman Sachs settlement. ACA was never charged. There is no admission of guilt or wrongdoing by Goldman. The penalty is far in excess of the alleged or admitted harm.

See my earlier post, "Fair Analysis Of SEC Goldman Settlement: Will The Court Accept It?"

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