Signs of (US) Justice against Misery Makers

A US district judge Jed Rakoff looks set to become an international hero if a case he is insisting be brought against Citigroup helps to bring to book banksters whose excesses have led to global meltdown and euro zone misery.


Citigroup head office – Image by LoopZilla via Flickr

The FTAlphaville blog has the full story here. In essence the judge is challenging the right of the regulatory authorities to accept plea bargaining which amounts to what he called “pocket change” in a case where Citicorp allegedly made a profit of $160 million, and losses of $700 million for hapless punters on whom it dumped dubious assets.

“Citicorp’s punishment for bad behaviour is manifestly insufficient to prevent it doing something similar, since the bankers get the rewards, and the buyers take the risk. Thanks to Judge Rakoff, all the dirty linen is now going to get aired. Throwing the deal out, he set the case down for next July. It should be a cracker. ” notes the FT.

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One Response to Signs of (US) Justice against Misery Makers

  1. Pingback: Cyprus: European Economic Heart Attack Ahead? | FrenchNewsOnline

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