January 10, 2012
In late December the Securities and Exchange Commission agreed to a $70.4 million settlement with GE Funding Capital Market Services over bid-rigging. No one is going to jail for breaking the law, as is the custom with high-powered law breakers.
If you attempt to find a website for GE Funding, good luck. They don’t have one. But their business, among other things, is investment management, and they appear to have only 2 employees with a declared annual revenue of $180,000. Yeah, sure. Here’s a little more info on the company.
The same government agency, headed by Mary Schapiro, appears to be pulling out all stops to protect Citigroup. You may recall that Judge Jeb Rakoff blistered the SEC early last year for using mink gloves to discipline Wall Street law breakers. Then in November he made the SEC go back to the drawing board to re-figure their fines for Citigroup. Unhappy with Rakoff, the SEC pulled an end-run on him and went to 2nd Circuit for additional time to plan their defense of Citigroup which Rakoff wouldn’t grant them. Rakoff isn’t very pleased with that.
For nearly two decades the SEC has been nothing more than a defense department for Wall Street, financed by the taxpayers. They’ve tried to camouflage their true agenda with an occasional slap on the back of the hand, which is usually rewarded by a high-paying do-nothing job for SEC officials after they leave public service.
Never underestimate the difficulty of changing false beliefs [with] facts.
Economist Henry Rosovsky