Sorkin on SEC-Citi Settlement

http://www.futureofcapitalism.com/2010/08/sorkin-on-sec-citi-settlement

Andrew Ross Sorkin has an intriguing column in the New York Times about Citigroup's $75 million settlement with the Securities and Exchange Commission:

On its face, the settlement looked like a victory for the good guys. The S.E.C. was finally holding Wall Street responsible for misleading shareholders. But take a step back and ask this question: Who is paying that $75 million fine?

The answer is Citigroup's shareholders — the same people who were arguably defrauded by its failure to disclose its exposure to subprime mortgages in the first place. And that means you and I are liable, too. Taxpayers own 18 percent of the company.

The government fines a company it owns.

by Editor  |  Aug 3, 2010 at 11:49 am Related Topics:  Banking, Government ownership, Press, SEC receive the latest by email: subscribe to the free futureofcapitalism.com mailing list