U.S. District Judge Rakoff Smells a Rat

The SEC charged Citigroup with betting against investment "opportunities" it had created. As investors were taking losses the bank made $160 million. The SEC allowed a consent judgment against Citigroup settling the case to be filed the same day it filed its lawsuit against Citigroup.

Did someone smell a rat?

WNYC's blog, citing today's AP story, "City Judge Rejects $285M SEC-Citigroup Agreement" quoted U.S. District Judge Jed Rakoff as writing "in any case like this that touches on the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives, there is an overriding public interest in knowing the truth.

"In much of the world, propaganda reigns, and truth is confined to secretive, fearful whispers  Even in our nation, apologists for suppressing or obscuring the truth may always be found. But the SEC, of all agencies, has a duty, inherent in its statutory mission, to see that the truth emerges; and if it fails to do so, this court must not, in the name of deference or convenience, grant judicial enforcement to the agency's contrivances."

In much the same way the public needs to know what dealings went on behind closed doors to bail out the banks.  It's the public's money.  We may not now be sophisticated enough to understand what went on, but hey, give us the numbers and some talking heads and we'll see if we should pick up our pitch forks and burning brands or nod our heads at the wisdom of our representatives.