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View Full Version : Judge Blocks Citigroup Settlement With S.E.C.



Conley
11-28-2011, 02:06 PM
WASHINGTON — A federal judge in New York on Monday threw out a settlement between the Securities and Exchange Commission and Citigroup over a 2007 mortgage derivatives deal, saying that the S.E.C.’s policy of settling cases by allowing a company to neither admit nor deny the agency’s allegations did not satisfy the law.

The judge, Jed S. Rakoff (http://topics.nytimes.com/topics/reference/timestopics/people/r/jed_rakoff/index.html?inline=nyt-per) of United States District Court in Manhattan, ruled that the S.E.C.’s $285 million settlement (http://www.nytimes.com/2011/10/20/business/citigroup-to-pay-285-million-to-settle-sec-charges.html), announced last month, is “neither fair, nor reasonable, nor adequate, nor in the public interest” because it does not provide the court with evidence on which to judge the settlement.The ruling (http://www.nysd.uscourts.gov/cases/show.php?db=special&id=138) could throw the S.E.C.’s enforcement efforts into chaos, because a majority of the fraud cases and other actions that the agency brings against Wall Street firms are settled out of court, most often with a condition that the defendant does not admit that it violated the law while also promising not to deny it.http://www.nytimes.com/2011/11/29/business/judge-rejects-sec-accord-with-citi.html

I'm encouraged that a federal judge is still concerned about what is best for the public interest. It's only a small step and likely will mean nothing in the grand scheme of things, but hey, it's a positive. :grin:

waltky
11-10-2012, 07:10 PM
Pandit's golden parachute...
:huh:
Citigroup pays fired executives millions
Nov. 10,`12 (UPI) -- U.S. banking giant Citigroup said it would pay its recently fired Chief Executive Officer Vikram Pandit $6.65 million as a bonus for his work in 2012.


The bank said it would pay Pandit the bonus as part of his "incentive" pay, The New York Times reported Saturday. The bank's board of directors announced Pandit resigned in October, but his sudden departure was orchestrated by Chairman Michael O'Neill, the Times said. His resignation was announced in conjunction with the ouster of Chief Operating Officer John Havens.

Pandit is scheduled to receive a stock and cash package worth $8.8 million, but he will lose out on retention pay, that a source said was worth $24 million.

Havens is expected to be given $6.8 million in incentive pay on top of a deferred stock and cash package worth $8.725 million. But he will also lose his retention pay, the Times said. The bank named Michael Corbat as Pandit's replacement.

Source (http://www.upi.com/Business_News/2012/11/10/Citigroup-pays-fired-executives-millions/UPI-37661352561601/)

roadmaster
11-10-2012, 07:25 PM
Citigroup is corrupt. First hand I know some that called in their payments to only have them wait to cash them so they could try to say the people didn't pay on time.