The DPA Dilemma

When I heard that Jed Rakoff had rejected the deal between Citigroup and the SEC, my initial reaction was like Black and Wheeler‘s — I’d be happy to see one of the banks that destroyed the world taken to trail rather than given a wrist-slap.   And I wouldn’t say that I no longer think that, exactly.   But there’s no question that these deferred prosecution agreements reflect a much deeper problem: the SEC’s lack of resources.   Taking away DPA’s as a tool more frequently would probably make things worse rather than better.    I have some lengthier thoughts about the dilemma.