Settlement With Wachovia Points Up a Controversy

[alp227]

Source: NYT

The Securities and Exchange Commission and the Justice Department sit a little more than a mile apart in this city. But they are light-years apart in how they deal with lawbreakers on Wall Street.

The two law enforcement agencies, together with other federal and state regulators, announced Thursday that they had wrested a $148 million settlement from Wachovia Bank, now part of Wells Fargo, on charges that the bank reaped millions of dollars in profits by rigging bids in the municipal securities market.

The settlements are curious because they seem diametrically opposed. In the Justice Department settlement, Wachovia said it “admits, acknowledges and accepts responsibility for” manipulating the bidding process in the sale of derivatives on tax-exempt bonds to institutional investors like cities, hospitals and pension plans over a six-year period ending in 2004.

But in fashioning a settlement with the S.E.C. for the same actions, based on the same facts, Wachovia agreed to settle the charges “without admitting or denying the allegations.”

Read more: http://www.nytimes.com/2011/12/09/business/contrasting-settlements-in-wachovia-case.html

[Lint Head]

1. This is legalized bribery. The system has evloved into settlements as a part of doing business

not a punishment. Settlements should be eliminated. Money should be paid to the victims and lawyers by the convicted criminal or criminals as just one piece of the punishment for committing a crime.

[msongs]

2. own a gun, rob a bank. own a bank, rob the world nt

[JDPriestly]

3. They are not diametrically opposed, not at all.

Why couldn't Wachovia admit and not admit guilt at the same time?

Not admitting guilt is not the same as claiming innocence. There is no controversy, no contradiction.

What is controversial in my view is that this journalist who has so little understanding of the meaning of the English language is writing for the New York Times.

[sarcasmo]

4. If they steal 3 billion they get fined 300 million. Bankers the new Mafia.

[DCKit]

5. That's EXACTLY what it is.

It would appear they own the DOJ and SEC as well.

[sarcasmo]

7. If you look at the Goldman Sachs, Government revolving door you will see

that is one big Mafia.

[fasttense]

6. Wow, a capitulation dressed up to look like a just punishment.

The two law enforcement agencies, together with other federal and state regulators, announced Thursday that they had wrested a $148 million settlement from Wachovia Bank."

Wrested 148 million? How funny is that? Bid manipulation and fraud get out of jail free card for a mere $148. Considering the Fed gave them much more than that in bailouts, it's just too funny when the New York Times tries to dress up a capitulation.