No wonder the SEC has an image problem.
The SEC has allowed Citigroup to pay $285 million to settle civil fraud complaints regarding a billion dollar CDO. The SEC had its PR moment in the sun thundering that investors are entitled to receive “more care and candor” while Citigroup confirmed settlement without admitting or denying the charges.
To the outsider it looks like the SEC wasn’t convinced it had a case and Citigroup settled to get them off their back. Whatever the facts, the perception is reinforced that regulation is a cozy affair and favours the big guys.
The PR Verdict: “D” for the SEC. Goldman Sachs and JPMorgan Chase both settled similar cases last year. Is anyone ever going to admit to the charges or have a case against them proven by the SEC? ….Anyone?
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