Citigroup gets Wrist Slapped, Judge Disapproves

[redqueen]

The age of open bankster warfare against the people of the world is upon us, and thus far, the casualties amongst the kleptocrat class has mainly been in the form of wrist slap fines issued by bribed and controlled bureaucrats and supposed prosecutors of the two tiered legal system. Thus, one would think that a recent settlement reached between shareholders and Citigroup in of course yet another civil suit where the fraudulent financial institution hid toxic assets would result in a rubber stamped agreement by the administering judge, but things have taken a slight twist.

From Rothschild Press, Reuters:

A Manhattan federal judge on Monday signaled he will not rubber-stamp Citigroup Inc’s proposed $590 million settlement of a shareholder lawsuit accusing it of hiding tens of billions of dollars of toxic mortgage assets.

U.S. District Judge Sidney Stein asked lawyers for the bank and its shareholders to address several issues at an April 8 fairness hearing, including requested legal fees and expenses of roughly $100 million, and the absence of payments by former Citigroup executives.

Citigroup spokesman Mark Costiglio declined to comment. Peter Linden, a partner at the law firm Kirby McInerney who represents the shareholders, did not immediately respond to requests for comment.

Stein joined other judges in recent years to question the fairness of large legal settlements in the financial industry.
...

The deals are getting so stinky that even the judges in the bought legal system can’t agree to it because of the blatant criminality of Citigroup. ...


http://www.theadvocateweblog.com/?p=13708

[redqueen]

1. one self kick... because even though I agree the final result won't be much different,

this is still good to see.

[Fawke Em]

2. Maybe the tide is starting to shift.

We can only hope.

[redqueen]

5. Yep...

It'd definitely signal a new era, unseen since the days of Andrew Jackson.

[joeybee12]

3. Thank God there are still a few decent judges out there...knr

[geek tragedy]

4. The difficulty with civil suits is that they also have to show

actual damages--i.e. that they bought the stock at XYZ price and then sold it at (XYZ-30%) price. The suits aren't designed to punish wrongdoing but rather compensate shareholders.

The main challenge to the settlement had been from a current Citi shareholder who thought the payment to plaintiffs' attorneys was excessive due to inflated billings.

As to why people like Chuckie Prince and Bobby Rubin don't pay out of their own pocket, they're usually covered by D&O insurance, paid for by . . . Citigroup's shareholders.

Nice work if you can get it.