Fines don't stop financial fraud

"Unsettling Wall Street: A judge rules against the SEC’s favourite way of penalising financial institutions," The Economist reports in its Dec. 3, 2011 edition.

The long and short of it is Citi reportedly "created a billion-dollar fund half-full of wretched mortgages. It then bet against it, earning fees on both ends of the transaction." After investigating, the Securities and Exchange Commission offered Citi a "plea-bargain" settlement of a $285 million fine.

Jed Rakoff, a NY district judge said to settle the case without establishing the facts "is worse than mindless, it is inherently dangerous." The public interest is "in knowing the truth." Hallelujah.