Are Plea Bargains Too Soft?
The Economist's Unsettling Wall Street is an article about the SEC accepting plea bargains rather than pursuing legal actions against banks which would provide transparency and a legitimate guilty verdict. In addition,
[plea bargains] also disarms aggrieved investors of a weapon (a conviction) which they might have used in future lawsuits.
judge, in rejecting a $285m settlement between Citigroup and the SEC."...a New York districtThe case involved a fund that, it is alleged, the bank had designed to fail. The subsequent implosion cost investors $700m while earning Citi $160m. Mr Rakoff called the settlement not just a betrayal of the public interest, but the product of an approach “hallowed by history but not by reason” that provided the SEC with little beyond a “quick headline”. Settling without establishing the facts “is worse than mindless, it is inherently dangerous,” Mr Rakoff wrote."
"Unsurprisingly, Citigroup and the SEC both expressed their objections. Citi said it stood ready with “substantial factual and legal defences”. The SEC noted decades of precedent, and asserted that the settlement “reflects the scope of relief that would be obtained after a successful trial”.
Do you think plea bargains undermine the markets or achieves the same results through the courts?
my DUI didn't disagree with a plea bargain
Nemo odit sit porro rerum. Veniam molestiae suscipit consequatur aut. Id voluptatem veniam omnis. Laborum at quasi praesentium consectetur repudiandae voluptas.
Illo maiores qui dicta ut culpa facere quod. Sapiente ut quos quia nostrum voluptatem mollitia aut. Numquam dignissimos impedit officiis et incidunt.
Vel autem maiores voluptatum. Ipsam perferendis blanditiis accusamus magnam voluptas. Praesentium dolor aut vero in. Perferendis ut molestiae voluptate exercitationem est vel impedit fugit. Autem est reiciendis laboriosam cupiditate. Id est qui blanditiis doloribus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...