Matt Taibbi | Finally, a Judge Stands up to Wall Street

Finally, a Judge Stands up to Wall Street

Federal judge Jed Rakoff, a former prosecutor with the U.S. Attorney’s office here in New York, is fast becoming a sort of legal hero of our time. He showed that again yesterday when he shat all over the SEC’s latest dirty settlement with serial fraud offender Citigroup, refusing to let the captured regulatory agency sweep yet another case of high-level criminal malfeasance under the rug.

The SEC had brought an action against Citigroup for misleading investors about the way a certain package of mortgage-backed assets had been chosen. The case is very similar to the notorious Abacus case involving Goldman Sachs, in which Goldman allowed short-selling billionaire John Paulson (who was betting against the package) to pick the assets, then told a pair of European banks that the “designed to fail” package they were buying had been put together independently.

This case was similar, but worse. Here, Citi similarly told investors a package of mortgages had been chosen independently, when in fact Citi itself had chosen the stuff and was betting against the whole pile.

Check out the rest here…


5 Responses to “Matt Taibbi | Finally, a Judge Stands up to Wall Street”
  1. Kathi says:

    Citigroup is now owned by One West Group LLC.-which includes John Paulson, George Soros, and Michael Dell in it’s private Investor Group-who also owns IndyMac…they were involved in all aspects of the securitization with the Banks..then crashed them..then bought for pennies on the dollar..then collect from the Government and Regulatory agencies “programs” and garauntees..and from the insurance companies-including the REMIC status since they claimed them to be in MBS…then fraudclosures and selling homes they never put a dime into…Ya just couldn’t write it to be this crazy….Justice will prevail if the Justice System follows the Rule of Law that our very foundation was based on in the United States of America…land of the free..because of the Brave..

  2. How many more stories like this do the American people need to hear until someone does something about all these crooks? Does anybody believe that there is going to be justice? not unless the American people push for justice t and push hard

    • talktotennessee says:

      That is the problem actually! The public does not hear or care what is going on unless it directly impacts them, their home, job, future, etc. etc. The fact that it actually does or will negatively affect them on so many levels escapes the majority. We are a nation of dumbed down people for the most part that just does not GET IT! Most are busy watching reality shows or sports on TV and going through the paces but are totally oblivious to the slippage in our society. It takes a lot to wake up people who are mentally asleep and teach them to recognize loss of freedom or rights in this country. Complacency and mental lethargy is the rule of the day. Some are some beginning to get an idea but it takes a lot of work to turn the tide. Recent elections hint that some are beginning to recognize the value of union bargaining rights or individual election/responsibilities rather than those dictated by political parties. People are beginning to recognize some risks, like those in OCCUPY, but banking and Wall Street’s deep pockets have bought influence in Washington for the most part and those sell outs have little loyalty to those they were elected to protect.

  3. lvent says:

    We need alot more honest American Patriots like this!….Thank You Matt for reporting this and thank you 4closurefraud for posting it……

  4. leapfrog says:

    You are a hero, Judge Jed! Keep up the good work and NAIL these fraudsters to the wall, along with their crony captured “regulator” buddies. Mary Shapiro should be stocked and pilloried…the bitch.

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