Can one judge put an end to the three-decade old SEC practice of allowing the accused to settle charges without admitting or denying guilt? Probably not. But after two years of warm-up matches, U.S. Judge Jed Rakoff seems determined to go to the mat to settle that question this month. If he succeeds, things will change for the worse for the SEC and for companies that end up in the clutches of its enforcement division.
Judge Rakoff's most recent assault on the SEC's standard settlement practices came in response to the SEC's proposed agreement with Citigroup that was announced last month, ...