Justice Prevails

I'm breaking a record with two posts in one day. :) I just saw the news that Judge Rakoff ruled against the $33M settlement agreement between the SEC and B of A regarding accelerating $3.6B in executive bonuses before closing the deal to acquire Merrill Lynch. B of A paid these bonuses despite a record $27.6B loss and being a recipient of one of the largest federal bailout funds. The judge said, "the proposed settlement suggests a rather cynical relationship between the parties: the SEC gets to claim that it is exposing wrongdoing on the part of B of A in a high profile merger, the bank's management get to claim that they have been coerced into an onerous settlement by overzealous regulators. And all this is done at the expense, not only of the shareholders, but also of the truth." He said it will go to trial on February 1, 2009.

I am so elated to hear this ruling. May the jury set a standard that will make banks and regulators think more than twice before trying to sweep something this large under the rug for such a small amount. The word 'truth' stands out and once it has cut a path in the darkness with the help of this judge, this one individual, it naturally lights the way to expose that which does not want to be seen.

Now I'm waiting for justice to prevail in the case of the Treasury Department trying to prevent us from seeing how the money was divided up between the banks. It will be interesting to see what the judge rules after seeing their appeal.

On the healthcare subject, when I heard that the President had the backing of the pharmaceutical industry, I saw that as a huge red flag of politicking and rubbing shoulders behind the scenes versus an honest agreement that puts the citizen first. That industry is very profit motivated and whatever transpires between the two continues their profit goals.

Also, regarding justice, I firmly believe that tort reform is necessary when it comes to suing doctors and hospitals. I don't see it in the current plan that is in writing. Perhaps that is in the plan that is still in the ethers being discussed.