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SEC Cops Want To Fight U.S. Judge

Publication Date: 
December 16, 2011
Source: 
The Wall Street Journal Online
Author: 
Jean Eaglesham and Suzanne Kapner

Professor Joseph Grundfest spoke with Jean Eaglesham and Suzanne Kapner of the Wall Street Journal about how Judge Rakoff's ruling in the Citigroup case isn't "necessarily a high-risk" move for the SEC.

The Securities and Exchange Commission is heading on a collision course with the federal judge who thinks the agency has been too lenient on big banks accused of misdeeds.

The SEC's enforcement staff is expected to recommend to the five-person commission leading the agency that it vote to appeal last month's rejection by U.S. District Judge Jed S. Rakoff of a proposed $285 million settlement between the SEC and Citigroup Inc., according to people familiar with the situation.

...

Joseph Grundfest, a Stanford University law professor who was an SEC commissioner from 1985 to 1990, said appealing Judge Rakoff's ruling in the Citigroup case isn't "necessarily a high-risk" move for the SEC because "the extent to which this is an unusual court decision is apparent to everyone, and the value of getting a review from an appeals court is equally clear."