"He knew what his firm did and he was an integral part of it," Judge Cote said.

On September 21, 2005, Judge Cote approved the settlement reached by the parties, and dismissed the lawsuit against Ebbers.

From the bench, Judge Cote has overseen trials involving immigrant smuggling and police brutality.

On two occasions, Judge Cote's opinions have greatly expanded the responsibility of entire industries.

"In authoring and promoting the documents," Judge Cote said, "he showed a disdain for society's understanding of important political and historical figures."

The ruling is the second one issued by Judge Cote in recent weeks that rejects an effort of Mr. Guiliani's.

"These shifting justifications are powerful evidence that the city does not believe its own position," Judge Cote wrote.

While Judge Cote sided with the investment banks yesterday, she has sometimes disappointed defendants.

He said he was later taken to a closed hearing before Judge Cote.

Mr. Lynch said the group is considering an appeal of Judge Cote's ruling.