U.S. District Judge Jed S. Rakoff said the Securities and Exchange Commission's justification for settling with Bank of America regarding investor disclosures was "at war with common sense." The SEC argued that attorney-client privilege prevented the agency from building a case against the bank's executives. Rakoff said if that were the SEC's policy, "it would seem that all a corporate officer who has produced a false proxy statement need offer by way of defense is that he or she relied on counsel."

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