Federal Judge Rejects Proposed Settlement between BoA and S.E.C

According to a NYTimes article by Louise Story published today, a Federal judge rejected a settlement between Bank Of America and the Securities and Exchange Commission over $3.6 billion given to Merrill Lynch executives as bonuses prior to its acquisition by BoA.

According to Ms. Story, "it is not the first time Judge Rakoff has ruffled feathers in the business world."

In 2003, "[Judge Rakoff] forced the S.E.C. to increase the $500 million fine it was levying against WorldCom to $750 million, he also demanded that the money be paid out to the company's shareholders, rather than to the agency."

Do you think Judge Rakoff is overstepping his boundaries by rejecting proposed settlements by the S.E.C. and enforcing his own "justice"?