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Bush Hopes to Limit Private Securities Fraud Litigation

By TChris, Section Court Decisions
Posted on Wed Jun 13, 2007 at 08:19:16 AM EST
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The Supreme Court will decide "whether investors can pursue lawsuits to recover investment losses if they can prove collusion between Wall Street institutions and scandal-ridden companies." Seems like a no-brainer that investors should be entitled to sue the entities that helped defraud them, right? Not to the Decider.

"We think the SEC is the right entity to bring those lawsuits and make sure investors are protected," [economic advisor Al] Hubbard said in describing the president's views. "We are in a society that is overly litigious and it's very harmful to society, very harmful to investors."

The president wants to curb "unnecessary lawsuits," with "unnecessary" evidently defined as any lawsuit he doesn't personally authorize. The SEC disagrees.

The Securities and Exchange Commission voted 3-2 to ask the solicitor general to support shareholders in the pending court case.

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    Bush Hopes to Limit Private Securities Fraud Litigation | 12 comments (12 topical)

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    Are lawsuits by Judge Bork necessary? (5.00 / 2) (#1)
    by Molly Bloom on Wed Jun 13, 2007 at 09:48:37 AM EST


    Bush and the law (5.00 / 1) (#2)
    by LizDexic on Wed Jun 13, 2007 at 10:03:08 AM EST
    Why don't people just laugh when Bush, "le moron stupide" suggests laws or changes in laws?

    After all, the man was turned down from the University of Texas law school...and I believe that he is not above holding a life-long grudge because of this.

    Cheney never graduated college. Rove is no "genius"...only compared to Bush...and these three have led the gutting of the justice department.

    Wrong Headline (none / 0) (#3)
    by Fritz on Wed Jun 13, 2007 at 12:30:45 PM EST
    The 9th Circuit Court of Appeals is in conflict with current law that the President supports.  This has nothing to do with fraud, but to add another deep pocket defendant for trial lawyers to harrass.  I'm surprised how silent the left was when Robert Rubin on behalf of Citigroup called the Treasury Department about helping ENRON.  

    No, I think it's the correct headline. (5.00 / 1) (#4)
    by kindness on Wed Jun 13, 2007 at 12:51:02 PM EST
    Bush Gave Policy Views on Top Court Case in today's SF Chronicle said:

    "In a lawsuit that harks back to the Enron scandal, the Bush administration is at odds with the federal agency that oversees securities markets as well as with state attorneys general and consumer and investor advocates.  President Bush personally weighed in with his views before the administration decided not to support investors whose securities fraud case is now before the Supreme Court."

    What bush43 didn't say was that:

    "Bush's role in the case underscores its significance. The outcome of the Supreme Court case could determine whether investors can pursue lawsuits to recover investment losses if they can prove collusion between Wall Street institutions and scandal-ridden companies...The Securities and Exchange Commission voted 3-2 to ask the solicitor general to support shareholders."

    So, bush43 is going against his own SEC protecting the CEO's & Corporate Board circle jerk.

    Parent

    SEC (none / 0) (#6)
    by Fritz on Wed Jun 13, 2007 at 03:20:04 PM EST
    SEC Commissioners do not serve at the pleasure of the President so it is not his agency.  This is a joint and severable argument to find deep pockets to sue.  Perhaps I should reconsider, then John Edwards could be sued for issuing sub-prime loans to poor people, when he was working at the hedge fu