Archive for SEC

Federal Judge Blocks Citigroup's Mortgage Settlement With S.E.C.


Via an email alert:

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, Judge Jed S. Rakoff of the Federal District Court in Manhattan, ruled that the S.E.C.’s $285 million settlement, announced last month, is “neither fair, nor adequate, nor in the public interest” because it does not provide the court with evidence on which to judge the settlement.

The ruling could throw the S.E.C.’s enforcement efforts into chaos, because a majority of the fraud and other cases 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.

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Report: Justice Dep't. to Probe whether BP executives traded stock based on insider information, more


No matter what element of the BP disaster we hear about, it all points to BP's extreme douchery and negligence. Now they've got another major legal headache:

The U.S. is examining whether BP Plc made misleading statements after its Gulf of Mexico oil spill and if company executives traded stock based on insider information about the accident, according to a person familiar with the matter.

The Justice Department is investigating possible criminal wrongdoing and the Securities and Exchange Commission is probing potential civil violations, said the person, who wasn’t authorized to speak publicly and asked not to be identified. [...]

The government has been reviewing whether there were violations of the Clean Water Act, which carries civil and criminal penalties, and the Oil Pollution Act of 1990, which can be used to hold companies liable for cleanup costs.

Also under review is whether there were violations of the Migratory Bird Treaty Act and Endangered Species Act, which provide penalties for injuries to wildlife, and other criminal laws.

Of course, they sweartogod they're cooperating fully. And by cooperating fully they mean lying through their teeth, deceiving, putting up roadblocks, dragging their feet, and going yachting.

H/t: Hugh Kaufman


Report: Justice Department Won't File Criminal Charges in AIG Case


Will BP and company skate, too, then? Or will polluting, poisoning and destruction of life before our very eyes make it impossible to avoid criminal charges?

The Justice Department has decided not to file criminal charges against the former head of a division at American International Group Inc. whose dealings in mortgage-related securities nearly bankrupted the company and led to a controversial government bailout, according to lawyers involved in the cases.

The decision appears to bring an end to the criminal investigation of AIG, but a Securities and Exchange Commission probe into AIG and the dealings of its London-based Financial Products subsidiary is continuing and could lead to a civil securities fraud case.

Lawyers representing Joseph Cassano, who formerly ran AIG's Financial Products unit, and Andrew Forster, who worked for Cassano, said they were told by federal prosecutors late Friday that no criminal charges would be filed.

Congratulations, AIG. Now you're free to go about screwing over the country again.

DoJ: Department of what again...?