Rakoff was critical not only of the "insufficient" amount offered as a pay-off, but the lack of transparency and especially the idea of shirking accountability for serious misconduct.
This closely parallels a line in the OWS proclamation of Sept. 27 which notes Wall Street firms "determine economic policy, despite the catastrophic failures their policies have produced and continue to produce."
The banks, who have till now witnessed a plethora of judges rubber-stamping anything approved by the SEC, will now have to work up a new deal with the SEC to resubmit to the court, negotiate a limited admission of guilt directly with Rakoff, or try to prove their innocence to a jury at trial.
It is not known whether Rakoff would accept any settlement that does not make Citi acknowledge guilt and give redress to individual investors.
The public recognition and debate of Rakoff's rejection here will be keenly observed by other judges, banks, the Obama Administration and particularly the understaffed SEC, exposed here for serially horsetrading harmful shortcuts.
Update: 12/1/11 Massachussetts AGs Brings Mortgage Fraud Case Against Wall Street
12/5/11 aired in full on cable TV by October 5:
They have taken our houses through an illegal foreclosure process, despite not having the original mortgage.
They have taken bailouts from taxpayers with impunity, and continue to give Executives exorbitant bonuses.
They have perpetuated inequality and discrimination in the workplace based on age, the color of one's skin, sex, gender identity and sexual orientation.
They have poisoned the food supply through negligence, and undermined the farming system through monopolization.
They have profited off of the torture, confinement, and cruel treatment of countless animals, and actively hide these practices.
They have continuously sought to strip employees of the right to negotiate for better pay and safer working conditions.
They have held students hostage with tens of thousands of dollars of debt on education, which is itself a human right.
They have consistently outsourced labor and used that outsourcing as leverage to cut workers' healthcare and pay.
They have influenced the courts to achieve the same rights as people, with none of the culpability or responsibility.
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