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Showing posts with the label Amicus Brief Regarding SEC v. Citigroup

Federal Judges as Rubber Stamps

Appeals Court Ruling in Citi Case Is a Gift to Big Banks

Anyone still waiting for justice with respect to the role that large banks played in the financial crisis had to be disappointed in a New York appeals court's ruling in a case involving a settlement agreement between Citigroup Global Markets and the Securities and Exchange Commission. Read more at:

http://www.americanbanker.com/bankthink/appeals-court-ruling-in-citi-case-is-a-gift-to-big-banks-1067939-1.html

Also see: http://www.prlog.org/11948760-william-michael-cunningham-files-revised-brief-in-sec-vs-citigroup-2nd-cir-ct-of-ap.html

"Friend of the Court" brief in SEC v Citi submitted. Case heard.

William Michael Cunningham last week submitted a revised "Friend of the Court" brief in a case currently pending before the United States Court of Appeals for the Second Circuit.

The case concerns the rejection, by a Federal Judge, of a settlement agreed to by the United States Securities & Exchange Commission (SEC) and Citigroup Global Markets Inc. (Citigroup), the latter accused of securities fraud.

As a friend to the Court, Mr. Cunningham provides an independent, objective and unbiased view in support of broad public interests. His education and experience have uniquely positioned him to provide objective, independent research and opinions concerning the issues central to the case.

The "Friend of the Court" brief notes that the negative impact of the fraud was $5.5 billion dollars, calculated, using the Fully Adjusted Return® Methodology, as the sum of the loss of all invested funds and the monetary value of societal impacts. The SEC settled the case for $285 m…

SEC v Citi - First response to new briefs

Selected highlights from the Appeals Court Brief filed yesterday by the SEC:

"As one example, the same district judge who rejected the consent judgment here approved a consent judgment in which Worldcom agreed to injunctive relief—and later, a $750 million penalty, one of the largest ever obtained by the Commission—without admitting or denying the fraud allegations in the complaint."

Irrelevant, since they refer to a different time and industry. More importantly, a $750 million dollar fine in 2002 translates into a $962 million dollar fine in 2012. Or a $285 million dollar fine is only $223 million in 2002 dollars.


The SEC notes that "BP resolved charges that it violated the Clean Air Act in connection with the Texas City refinery explosion, which killed 15 people and injured 170, by entering into a consent judgment that ordered it to undertake an array of remedial measures and pay one of the largest civil penalties ever assessed for Clean Air Act violations at an individ…

Recent News Citations

Big banks: Too big to behave?
March 12, 2012: 10:28 AM ET

Given the level of repeat offenses at some of the largest financial firms, it's clear that the SEC needs to change its approach. By Eleanor Bloxham, CEO of The Value Alliance and Corporate Governance Alliance.

Minority banks are struggling, even with bailouts
March 11, 2012. By Beth Healy, The Boston Globe.

OneUnited Bank is facing a painful question: What purpose can a minority institution serve when its own community is turning against it?

That’s the situation the Boston bank, the nation’s largest black-owned bank, finds itself in after threatening to foreclose on Charles Street African Methodist Episcopal Church, one of the most revered black churches in Boston, which, like many borrowers, fell behind on its loans during the recent recession. Community leaders vow to organize a national boycott of the bank if it fails to renegotiate the church’s loans by Thursday.

"Friend of the Court" brief in SEC vs. Citigroup (2nd Cir Ct of Ap)

William Michael Cunningham submitted a "Friend of the Court" brief in a case currently pending before the United States Court of Appeals for the Second Circuit.

The case concerns the rejection, by a Federal Judge, of a settlement agreed to by the United States Securities & Exchange Commission (SEC) and Citigroup Global Markets Inc. (Citigroup), the latter accused of securities fraud.

As a friend to the Court, Mr. Cunningham seeks to provide an independent, objective and unbiased view in support of broad public interests. His education and experience have uniquely positioned him to provide objective, independent research and opinions concerning the issues central to the case.

The "Friend of the Court" brief concludes by noting that markets have become less stable. Faulty regulatory practices and collusion (too big to fail, etc.) have moved regulators and lawmakers..in the direction of supporting suppliers to the financial service marketplace. A decision by the (App…