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Judge Jed Rakoff’s Ruling on Unsealing FINRA Documents…

Posted by Larry Doyle on January 20, 2010 10:09 AM |

…will be delivered by February 15th.

Will America ever learn if current SEC Chair and former FINRA head Mary Schapiro and fellow FINRA executives lied verbally and in a proxy statement regarding the merger of NYSE Regulation and the NASD to form FINRA?

Having attended hearings on this case (Standard Investment Chartered v FINRA) in Judge Jed Rakoff’s chambers in October and been informed of further deliberations in December, I was hopeful last Thursday that Rakoff would order the details of pertinent FINRA documents to be made public. Recall that The New York Times, Dow Jones, Bloomberg, and Sense on Cents have all requested the release of these documents.

I was back in Judge Rakoff’s chambers last Thursday.

I heard impassioned pleas by lawyers for the news organizations (The New York Times lawyer spoke on behalf of all the news organizations) and for FINRA making spirited cases for their positions.

While America is screaming for transparency, Americans should be aware that FINRA’s defense in this case is trying to totally stifle it. The gist of FINRA’s defense is that Judge Kram (since deceased), the initial presiding judge in this case, had ordered the documents sealed. That ruling was upheld on appeal. Would Rakoff overturn these rulings? Would America finally receive a degree of transparency into our failed financial regulatory system?

How would Rakoff rule? He had a full month to prepare for this hearing, knowing full well what each side would likely present. At one point, Rakoff even offered that he would have ruled differently than Judge Kram’s initial ruling to seal the documents.

Anticipation ran high in the courtroom. Unfortunately, that anticipation was met with disappointment when Judge Rakoff indicated that he would not issue his ruling until February 15.

The incestuous intersection of Wall Street and Washington is reviling to the American public.

We will have to wait another month to see if the allegations of Mary Schapiro’s lying are confirmed. These allegations (see details here) were made in the complaint and verbally highlighted in December by plaintiff’s attorney Jonathan Cuneo.


P.S. Want to learn more about the Wall Street self-regulator, FINRA? I have written extensively on FINRA, including reviews of Annual Reports, pending lawsuits, investment activities, and more.  Please utilize the search window here at Sense on Cents to access numerous articles on FINRA.

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