Comments on: Judge Rakoff wants facts! Notes from yesterday’s hearing

By: Fireman1979

Fireman1979 — Sat, 15 Aug 2009 02:26:19 +0000

I have read 8-10 articles on this court hearing and this is the best so far. I can’t help but wonder why the media gives the hearing and questioning such incomplete coverage? I hope that Judge Rakoff continues his common sense approach in a couple of weeks.

By: StevenKs

StevenKs — Wed, 12 Aug 2009 00:34:34 +0000

Thanks R.W. for showing that bloggers can be good reporters.

If Mr. Lewis doesn’t face criminal charges, at least, this hearing should provide ammo for civil action by shareholder lawyers.

It would be some consolation if Mr. Lewis was forced to spend most of the rest of his life & all his fortune in court defending charges of malfeasence & failure to excersize the most basic due diligence.

By: RS

RS — Tue, 11 Aug 2009 22:57:12 +0000

Very interesting! Btw, I love the mix of funny, educational, and all things financial in your blog.

By: james reginald harris, jr

james reginald harris, jr — Tue, 11 Aug 2009 22:47:25 +0000

My ex-wife is concerned that my car insurance and storage unit payments of $700.00 will effect her good credit if the money I provided (“WHILE WALL STREET STOLE ALL MY INTELLECTUAL PROPERTY TO PROVIDE THEIR BONUS MONEY”) runs out before a FINANCIAL SETTLEMENT.

Well I do have available the LC2-SFR ignitor mechanism and my bills today are $700.00

By: ernest

ernest — Tue, 11 Aug 2009 21:06:26 +0000

thank you judge rakoff

finally there is someone within the world’s greatest democray who is actually representing the interests for the greater good of society

the SEC has really shown its true colours here – corrupted, self-centered and toothless

By: Lawrence J. Goldstein

Lawrence J. Goldstein — Tue, 11 Aug 2009 17:55:44 +0000

Concerning your “More to the point, perhaps, Rakoff asked why the settlement is being collected from the corporation and not from individuals responsible for orchestrating the misleading [SEC filing]? Rosenfeld mumbled something about the degree of misconduct, the
need for deterrence and finding the misconduct, the need for deterrence and finding the closest precedent to justify the structure of the settlement. As for going after specific individuals, Rosenfeld says he can’t. The executives are all hiding behind attorney-client privilege. The judge was not impressed with this excuse, noting that if BofA execs are asserting they relied on advice of counsel, which they seem to be, then they have to waive privilege.”

Hooray for Judge Rakoff. What I would wish a judge (and Congress as well) to ask, and the SEC to explain, is not only for details behind BofA Settlement with the SEC, but for the SEC to explain how fining (penalizing) the Company, which means fining (penalizing) the owners, the shareholders, is of benefit to the shareholders who are the very ones damaged.

The SEC always fines the perpetrators of wrongdoings, keeps the multi dollar fines for themselves and sees to it that the victims receive zero benefits. In other words crime does pay – for the SEC – but out of the very pockets of the victims of the crime.

What is the rationale for this? SEC, Congress, Judges, how does this make any sense to you?

As President Barak Obama has been saying for years; “It is time for change”

By: million

million — Tue, 11 Aug 2009 16:16:01 +0000

“This is Wall Street(!)”

Funny. Did he say it like in the movie 300? Or did it sound more like a spoiled child whining for mommy taxpayer to continue funding obsolete crony capitalism?

Wall Street, like a buggywhip only less practical.

By: Michael Blomquist

Michael Blomquist — Tue, 11 Aug 2009 14:46:34 +0000

“My least favorite defense argument was about the structure of TARP. Since it came in the form of preferred stock, which has a fixed dividend, Liman argued its value wasn’t impacted by expenses like bonuses.”

Yes! That is BS and one that should have all American tax payers demanding that the $3.6 billion be disgorged and utilized for a new government agency with teeth; one that could phase out the SEC ASAP. It won’t be long before BofA will need more money to pay the “fixed dividend”

Imagine the budget a new enforcement agency could have if they did their damn job. How long would $3.6 billion fund the SEC?

Unfortunately, they would probably cause a 30% cut to GDP because financial fraud has become such a huge part of our economy.

Regardless of what happens to GDP and our foreign debt obligations we need to reboot and become more self sufficient. We can survive as a bankrupt nation, but not with out rule of law.

By: oj

oj — Tue, 11 Aug 2009 13:30:06 +0000

The judge asks ““how many banks were hiring people when the bonuses were paid?”; well the surprising answer is several. Barcap got the NY side of Lehman and Nomura got the European side. Both were looking for the otehr fit. Then there were always the other players who will always hire genuine rainmakers (and make mistakes along the way). Your good people are always, repeat, always, in demand.

By: sir incompetent mcbonus

sir incompetent mcbonus — Tue, 11 Aug 2009 09:56:13 +0000

v.good Rolfe,keep on it.

By: Phil Goldstein, Bulldog Investors

Phil Goldstein, Bulldog Investors — Tue, 11 Aug 2009 02:37:13 +0000

Great reporting, Rolfe! The court should put the hearings on the web! I would pay to watch it.

By: Adam

Adam — Tue, 11 Aug 2009 01:29:11 +0000

Doing some good ol’ fashioned reporting, eh? Nice.

btw, looks like this is the same judge who presided over SEC vs. WorldCom:

http://en.wikipedia.org/wiki/Jed_S._Rako ff#sec_v._worldcom

“The reforms were implemented, and Rakoff later credited Breeden with ‘helping to transform a fraud-ridden company into an honest, well-governed, economically viable entity, MCI, Inc.’ WorldCom was purchased by Verizon in January 2006.”