“The SEC runs a revolving door of crony capitalism where attorneys and enforcement officers come and go exchanging positions with Wall Street and the large banks as frequently as you and I change our underwear.”
Last month we told you about a federal judge pulling a not-so-fast on the Security Exchange Commission and demanding a closer look at a $285 settlement with Citigroup that Roy Oppenheim called a ‘get out jail free card’ for the banking giant.
Well ladies and gentlemen this week Judge Jed Rakoff has stuck up for the homeowner once again and struck down the settlement, which would have allowed Citigroup to skate without having to admit any wrongdoing in a 2007 toxic mortgage deal.
In his written decision the judge said he spent hours going over the settlement, and ultimately concluded it was “neither fair, nor reasonable, nor adequate, nor in the public interest.”
Florida foreclosure attorney Roy Oppenheim has been calling shenanigans on this settlement ever since it was first announced, and now we’re glad to see Judge Rackoff stand up and take action against the bank. He had previously called this settlement a ‘sweetheart deal’, and he was absolutely right. As Oppenheim has said on far too many occasions, there can be no changes to the banking industry without accountability, and Judge Rakoff has finally demanded it.
He also held the SEC to task yet again for their failure to hold the banks up to scrutiny and by failing to assess blame. By allowing these financial institutions to enter into these settlements without addressing the charges against them Rakoff added that the SEC “deprives the court of even the most minimal assurance that the substantial injunctive relief it is being asked to impose has any basis in fact.”