Tuesday, November 29, 2011
The Rakoff Decision explained by Taibbi
The decision by Judge Rakoff not to sign off on the latest Citibank/SEC settlement is a really big deal. Matt Taibbi explains why.
That line, “a cost of doing business imposed by having to maintain a working relationship with a regulatory agency,” is one of the more brutally damning things you’ll ever see a judge write. Rakoff is saying that these fines are payoffs to keep the SEC off the banks’ backs. They’re like the pad that numbers-runners or drug dealers pay to urban precinct-houses every month to keep cops from making real arrests. That's what he means when he refers to "maintaning a working relationship." It's heavy stuff.Heavy stuff indeed!
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