Two cases in recent months have peered into the SEC's
normally opaque charging and settlement processes and raised disturbing
questions. Bank of America , resolved earlier this year took repeated
hearings to secure approval of the SEC's settlement with the Bank. The case was
The battle lines have been drawn over the proposed
settlement in the SEC's action against Citigroup Global Markets, Inc. SEC v.
Citigroup Global Markets, Inc., Civil Action No. 1:11-cv-07387 (S.D.N.Y.) ( here ). Judge Rakoff entered an
order posing a series of questions to the parties ( here ...
The SEC and Judge Rakoff are squaring off in
what can only be viewed as a very high stakes game of poker. At the center of
the battle is the question of whether Judge Rakoff acted within his discretion
in refusing to enter the settlement the Commission negotiated with Citigroup
Global Markets, Inc...
The SEC's long established settlement practice of
resolving enforcement actions without requiring an admission of liability -
that is, on a neither admit nor deny basis - came under scrutiny again last
week. On May 17, 2012 a House Committee held hearings on the question. Earlier
in the week...