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Judge Rakoff Dismisses Suit Against Mary Schapiro and FINRA Under Absolute Immunity

Posted by Larry Doyle on March 1, 2010 5:49 PM |

America should be reviled when those charged with upholding the law overseeing our markets are not held to that standard themselves.

Today is a very dark day for those in our country who cherish the virtues of truth, transparency, and integrity.

Why am I despondent? This afternoon, Judge Jed Rakoff issued a ruling dismissing the lawsuit brought on behalf of Standard Investment Chartered against Mary Schapiro and other FINRA executives. What is the basis for Judge Rakoff’s dismissal? He allowed the defense the cover of absolute immunity in the merger of the NASD with NYSE Regulation to form FINRA.

Recall that the plaintiffs alleged that Ms. Schapiro and her fellow defendants lied verbally and in the proxy statement used for this merger. The alleged lie had a dollar value of $175-$350 million.

In conjunction with the ruling by Judge Lifland earlier today against Madoff investors, this ruling by Judge Rakoff is further evidence of just how stacked the Wall Street regulatory powers are against American investors. Additionally, with this dismissal I would imagine the allegations embedded in the Amerivet Securities v FINRA case will also face an uphill climb. Those allegations include claims of FINRA front running the auction-rate securities market, FINRA investing in Bernie Madoff, and more.

I love my country, but this system is not serving the interests of the American public.

Wall Street. What a racket.

The ruling is subject to appeal.

I submit Judge Rakoff’s ruling. Click on image to access pdf document:

LD

  • Mike

    Finra and NASD are untouchable.

  • Bill

    Well, so much for that. Interesting that FINRA has the benefit of a quasi governmental entity, i. e. immunity, but
    not the customary burden of a governmental entity–transparency. Otherwise known as a license to steal.

  • Bill

    I would also add, looks like the Plaintiff in the case didn’t even get the chance to smoke a cigarette before the
    trigger was pulled.

  • john w

    another blow Tenn Court vacats decison for investor plaintiff
    WTF is going on ?

    Tennessee State Court Ruling Undermines Securities Arbitration

  • coe

    Very discouraging, but not at all completely unexpected…it’s no wonder why there is a helpless sense of cynicism that permeates our feelings about our system’s core institutions – political, legal, corporate, social services, pension funds, law enforcement, regulatory et al…common sense and ethics sacrificed yet again…keep fighting, LD

  • Randy

    Anyone who really expected justice in this situation is still living in a fantasy world.

    All of us would be well advised to remember that a Government strong enough to give us all or even most of what we want is also strong enough to take virtually everything we have.

    If any of us are still holding onto any lingering doubts about how one-sided things have become in this country, in favor of the rich and powerful.. these recent nails in our future coffins ought to dissuade us from further fantasies in that regard. There is a great deal more to come and none of us are going to like any of it even one little bit.

    I too love my country and most of the people in it, but I realize, more fully every day, that my vision of the country no longer matches up at all with what has become of it.

    Whom amongst us relishes the idea of having to explain to our grandkids that we sat on our lethargic behinds and simply watched our rights, our freedoms and even our very country, stolen right out from under our very noses in broad daylight and did nothing truly productive to stop it?

    Do any of us really think that telling them we are sorry, would truly suffice for what we have allowed? Is that truly how we are all going to let this end up?

    If now is not the time to organize legally and ethically across this entire country and stand up, elbow to elbow with our fellow citizens and loudly speak as one to say enough is enough, then when is that time?

    I submit to you that the clock is ticking and we are perhaps already in the 11th hour.

    • john w

      VERY WELL SPOKEN RANDY! THANKS We are really on our own in this mess, the govenrment & Wall St are all complicet in crime.
      The US is lost, and will fail. WhEn the “citizens” can be robbed with impunity by the financial self-serving liverworts what choice do we have? As I have said before just put up a white surrender flag and get what is left of any assets you have left out of this country and into gold/silver.
      Don’t even keep money , if you can call the worthless green ink that, out of any commercial bank as well.

      Time to go to Canada.

  • disenchanted

    I agree with Randy. Maybe it is time that
    all BD’s drop out of Finra and create a new
    MEMBER organization. What besides the power
    of Finra and it’s heads could the Judge
    possible make this ruling. I guess if I
    made 3 million dollars a year, I could make
    decisions go in my favor also. What turns
    judges into stone???

  • beth

    for all we know, the judge might have
    been threatened… with what, who
    knows.






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