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The world focus as we all know is now on Greece and the potential for a default, the American economy and the one country that everyone is weary of, China. Over the weekend I had some time to catch up on my reading. The topics that I read about usually range from world politics, and economics. One thing that always surprises me is about all the “little” things that go unnoticed or the real story behind the story if you know what I mean. This has inspired me to write a small series of blogs about the world we are living in today.

The Occupy Wall Street movement, in my opinion, has failed to show anything new except that people are actually fed up with wall street and know no other way of showing their frustrations. The lack of leadership and a single message makes it look more like an unruly mob than anything else. The movement fails in the fact that it has generalized Wall Street as a hole and as a corrupt entity. They fail to single out the culprits who started this mess, continue creating problems and help manipulate the markets day after day.

An example of this comes from an article I read in Bloomberg Weekly about how the SEC has gotten suckered once again.  The article reveals that the SEC made a settlement with Citigroup over a fraud settlement at the sound of $285 million.  In the charges made against Citigroup was that in 2007, the company made a $1 billion CDO (Collaterized debt obligations) package  that was tied to the subprime mortgages who’s main goal was to basically blow up for investors while simultaneously betting against their own products. Basically investors were given a time bomb and Citigroup held the detonator. According to the SEC, Citigroup made a profit of $160 million in the process. So basically instead of losing $1 billion, they lost only $100 million and with the agreement do not need to admit that they did no wrong doing while at the same time promising not to do it again. Pretty good deal if you ask me.

The story does not end there. Nonprofit group Better Judgments, claims that Citigroup actually made somewhere in the range of $600- $700 million with the CDO. On top of this this was not the first time Citigroup had problems “not” doing anything wrong. It was its fifth offence since 2003.

If you read something like this you wonder what the SEC really does. Maybe OWS should be focusing on the SEC for looking the other way and not doing their jobs. In my opinion it’s the regulatory agencies that have failed the markets as well as the few who manage too screw it up for the rest. The thing that we are all fooled about is the belief that we all play by the same rules, and that’s its only cheating if we get caught. The only hope that I can shed on this situation with Citigroup is that Better Judgments manages to get the SEC settlement before the courts and allow a real third party to judge the case so that justice can be done.

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