Judge questions fairness of Citigroup $590 million settlement

RadicalRebel started a very interesting thread about "Sundown in America", and included in that thread was a report by the FDIC, which describes the plan that they, along with the Bank of England, have devised to restructure the financial world's axis by taking down the CEOs and Boards of Directors - the TOP DOGS - and holding them accountable for the mess they have made.

Here is an article from yesterday describing how a judge has insisted that instead of just letting Citi-group pay their "settlement" out - he wants the EXECUTIVES to be held responsible, citing that " the absence of payments by former Citigroup executives" makes the settlement UNFAIR. Maybe things really are grinding, ever-so-slowly-and-painfully toward a resolution of the banking schemes that caused this nation's economy to collapse.

'Bout time! I'd like for every ONE of those bastards to be stripped of their wealth, their jobs, and their freedom to be bankers. I think most of us would agree.

www.newsdaily.com...

Apr. 1, 2013 (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.

Yeah, the lawyers for the bank and it's shareholders declined to comment to the press regarding the judge's refusal to accept the settlement. Figures. What scum.

Gha. How the hell do they keep getting away with this? And, where does the "settlement money" go?
I hope someone can help me understand how it works. Just slapping a fine on the bank doesn't really fix what's broken, does it? And what do these "settlements" do, exactly? Just buy them off the hook?

I really have a hard time understanding economics, but I'm trying. Can you all please help me make sense of this?

"Does the absence of any payments from the individual defendants render the settlement unfair to class members who still hold the Citigroup stock they purchased during the class period?" he asked both sides to address.

Stein also asked for more information, including how much a reasonable client would pay to justify fees for lead counsel and other lawyers equal to 16.5 percent of the settlement amount, or about $97.4 million, plus $2.8 million for expenses.

The judge asked both sides to address questions about how settlement funds would be allocated.

Yeah! How will they be allocated?

Insight: Pope to review Vatican bureaucracy, scandal-ridden bank
From the same source as the above article.

The new Pope may actually shut down the Vatican's bank, too -

VATICAN CITY, Apr. 2, 2013 (Reuters) — Pope Francis, who has said he wants the Catholic Church to be a model of austerity and honesty, could restructure or even close the Vatican's scandal-ridden bank as part of a broad review of its troubled bureaucracy, Vatican sources say.
...
One of the tests of his papacy will be what he does about the bank which has regularly damaged the Vatican's image over three decades and faces growing calls for reform.

Last year a European anti-money laundering body found that the bank - formally called the Institute for Works of Religion and known by the Italian acronym IOR - had failed to meet some of its standards on fighting financial crimes.

Some more common sense from Pope Francis. Maybe things really are looking up!
He may shut it down, or turn it over to an outside entity - and in either case, wants to make sure their buckets o' money GO TO THE POOR.

Originally posted by wildtimes

,,,

"Does the absence of any payments from the individual defendants render the settlement unfair to class members who still hold the Citigroup stock they purchased during the class period?" he asked both sides to address.

Stein also asked for more information, including how much a reasonable client would pay to justify fees for lead counsel and other lawyers equal to 16.5 percent of the settlement amount, or about $97.4 million, plus $2.8 million for expenses.

The judge asked both sides to address questions about how settlement funds would be allocated.

Yeah! How will they be allocated?

That question always comes up. I always thought that the entity who prosecuted the case kept the fine. According to this, however...

The Wall Street Journal: Tallying Up U.S. Regulators' Money-Laundering Fines

Credit Suisse Group

In December 2009, U.S. regulators fined Credit Suisse $536 million, ending a five-year investigation in which the U.S. said the Swiss bank helped clients in Iran, Libya, Sudan, Myanmar and Cuba conduct financial transactions in secret between 2002 and April 2007. Half of the total fine was divided between New York City and New York state. “In both its scope and its complexity, the criminal conduct perpetrated by Credit Suisse in this case is simply astounding,” U.S. Attorney General Eric Holder said at the time, adding that the fine would had been even higher had Credit Suisse not cooperated in the investigation.

...it appears that the agencies kept only half the fine, dividing it between them. I've been trying to find out where the rest of it goes--with only hints so far. It appears that the remainder goes to Treasury; I do not believe the citizens who were actually harmed ever see a penny of it....

ETA: So, basically, at least half of it appears to go back into the corporate-welfare slush fund. They'll get it back in the next round of handouts....

reply to post by Ex_CT2


That's what I was afraid I'd hear.

There've been one or two occasions that my husband or I were "class action" recipients of "settlements" - we got sent checks for like, $2.50. Or, $7. Some bs like that.

And the fat cats roll on...

Originally posted by wildtimes
reply to post by Ex_CT2

 

That's what I was afraid I'd hear.

There've been one or two occasions that my husband or I were "class action" recipients of "settlements" - we got sent checks for like, $2.50. Or, $7. Some bs like that.

And the fat cats roll on...

That's so funny. I think there's a law that public ads have to be taken out to apprise people of class-action suits. You get the impression that it would actually be worthwhile to sign onto it. And then, as you say, in the end everyone gets around $2 to $10 (or sometimes a voucher or coupon). The lawyers take theirs off the top--I think they're limited to 30% of the total. Poor things....

reply to post by Ex_CT2


Funny in a sick way, yeah.

Ugghhhh. Maybe they should give the "class action claimants" the option of - do you want

A) this $5 we got for you?
or
B) for us to keep it and spend it prosecuting the CEO's directly for racketeering?

But, no. You don't get that option. :shk:

reply to post by wildtimes


This is kind of a mixed bag if info here, on one hand it demonstrates some the problems we need to deal with but more importantly it demonstrates a growing awarness of these issues. Its good to see stories like this where peopke are questioning the status quo.

reply to post by wildtimes


Blessing in disguise, no pun intended...
Im sure there is enough money there to resolve some issues and it would be nice to do away with corruption but imnot to take this at fave value. How exactly will help the poor here? Handouts? Social assistance programs? Gonna have to wait and see, as i said in the other thread...i wish i could share your optimism. I am glad though that there is some optimism still out there

reply to post by RadicalRebel



I like your avatar. Speaks volumes.
We'll keep track of things here, then, eh? And let folks know what we can figure out..... It's such a mess now.....*facepalm* *takes a deep breath*