Will judge Jed Rakoff ever approve of the SEC's $33 million settlement with Bank of America over charges the bank mislead shareholders about the multibillion Merrill Lynch bonuses? His stance, which seems to be mainly built on principle and raw skepticism, has made the two sides unusual allies in their attempts to portray the settlement as fair. The SEC, as reported by the New York Times, made its case in court, arguing it did not have the evidence to charge individual executives at the bank--the issue that Judge Rakoff is most interested in.

The drama has energized New York AG Andrew Cuomo. He has suggested that the bank is hiding behind attorney-client privilege, something the bank denies, and he is weighing the idea of bringing his own case. We'll have to see whether Rakoff will be satisfied. The SEC is vulnerable here, in this sense. If Cuomo mounts a strong case, it will make the SEC's investigative efforts again look bad, but not as bad as its Madoff investigation.  

For more:
- here's the article

Related Articles:
A wrinkle in Bank of America settlement snafu
Judge rejects Bank of America settlement--again
Will judge ever approve Bank of America, SEC settlement?
A better Bank of America settlement?
Bank of America settles bonus charges