Banks receive get out of Jail card Free?

It has been reported in the New York Post that the federal judge Jed Rakoff  ordered SEC Chief Mary Schapiro, placed on the hot seat when he ordered a court hearing in response to the agreement for “honey” agreement between the SEC and Citigroup.

Judge Rakoff wants the SEC to explain agreement with Citi.

It seems that the SEC Chief Schapiro’s hard to grasp the simple concept:

Stop being soft on the banks!

Judge Rakoff makes an interesting point when he asked why the regulation should be accepted only if Citigroup refuses to admit or deny fraudulent banking practices. The obvious answer is no, the solution should not be accepted.

Judge Rakoff noted that the SEC is to “ensure transparency in financial markets.” If the SEC wants to live up to its purpose, must keep the pressure on officials of the bank.

If there is even a small chance to change the banking giants like Citi should be held accountable for their wrongdoing. But with the failure of the SEC to actively investigate and charge banks for securities fraud, it is ultimately the owners, who pay the price.

SEC had filed similar charges against Goldman Sachs back in 2010, which resulted in the largest fine ever imposed on a financial institution, $ 550 million. However, Citigroup, one of the largest financial institutions are getting a bargain only asked to pay less than a fifth of the punishment of Goldman Sachs.

As early as 2009 Judge Rakoff rejected an agreement that between SEC and Bank of America in a $ 33 million in response to accusations that the bank had misled shareholders over the acquisition of Merill Lynch. He finally decided to accept the solution, when it was raised to $ 150 million.

Judge Rakoff also asked: “How can securities fraud of this nature and extent be due to simple negligence?” He is right in demanding answers to these questions. It’s hard to imagine how there could have been such a lack of oversight to a portfolio worth over $1 billion.

Homeowners need more judges like Judge Rackoff. It’s time to start the courts to protect consumers and banks begin to take responsibility, because the SEC is to forget that your goal is to ensure market efficiency and banks. If the government is serious about deterring mortgage fraud, maybe have to break the bank as on CNBC this article suggests.

Send Citi, Boa the “minor leagues” of the break: Mayo – CNBC.

Like small, like Carol Asbury, as the Florida lawyer faces 20 years in prison, business leaders must be accountable. If the banks are broken, allowing shareholders to have more control over corporate governance and allow shareholders to remove company executives who are underperforming or engage in practices that may be detrimental to trade and financial markets in the long term.

Having the power to remove executives who are not acting in the best interest of shareholders, which will have the ability to reduce the chances of finding a victim of fraud by the banks.