Washington Post columnist Richard Cohen joins the growing list of people asking for justice over the financial meltdown that has crippled this country’s economy. The SEC fined Citigroup $285 million, which barely put a dent in the company’s $3.8 billion profit last quarter.
Cohen:
The Citigroup settlement is being reviewed by a perplexed U.S. District Court Judge Jed S. Rakoff. Among other things, he wants to know why he should authorize a settlement “in which the SEC alleges a serious securities fraud but the defendant neither admits nor denies wrongdoing.†This is a marvelous question that goes to the heart of the matter. The settlement is itself a CDO, a legal version of a black hole in which next to nothing is disclosed. Why no guilt? Why no guilty people? Why such a non-punishing punishment? The SEC will have to tell it to the judge.