Is the SEC in bed with Citicorp?

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It sure looks that way. Jonathan Weil has another article in Bloomberg about the duo. It's really hard to believe. Citicorp repeats the same offense and the SEC collects a fine. Since 2003 the SEC has accused Citi of securities fraud. Citi doesn't plead guilty nor does it deny the SEC's claim. The SEC seems to forget about the previous claims when issuing a new claim, although it has the power to enforce the orders inherent in the previous claim, the settlement of some of which incorporate cease-and-desist orders.

The claims, themselves, seem to be kinder to Citi than they need be. For example, "the agency accused Citigroup of acting only negligently, though the facts in the SEC’s complaint suggested deliberate misconduct. The SEC named just one individual as a defendant, a low-level banker who clearly didn’t act alone. Plus, the SEC’s case covered only one CDO, even though Citigroup sold many others like it."