The Man Who Spanked the SEC

Here is my new favorite judge:

U.S. District Judge Jed Rakoff

The Securities and Exchange Commission (SEC, of whom I am appropriately terrified following my Series 7 exam) punishes those in the market who do evil, such as betting against their own team because they’re going to throw the game. Specifically, Citigroup, headed by the Indian Guy in Too Big to Fail.

This judge looked at the punishment the SEC meted out to Citigroup, and decided it was too soft. Too soft, because the SEC didn’t say Citigroup had to publicly confess all their sins.

“In much of the world, propaganda reigns, and truth is confined to secretive, fearful whispers,” he wrote.

The SEC countered that was making “too much out of the fact that Citigroup did not have to admit wrongdoing.”

Yes! They! Do! Yes! They! Do! They have to shout their sins from the rooftops and share a tent with The Occupiers.

Judge Rakoff called the feeble SEC / Citigroup settlement “neither fair, nor reasonable, nor adequate, nor in the public interest.”

Read more about Judge Rakoff and his massive stones.