Citigroup settlement with SEC denied by judge

Discussion in 'Law and Justice System' started by Ravi, Nov 29, 2011.

  1. Ravi

    Ravi Diamond Member

    Feb 27, 2008
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    Citigroup's $285 million settlement with the Securities and Exchange Commission over a mortgage-backed securities fund was rejected by a federal judge who said he hadn't been given enough facts to approve it.

    U.S. District Judge Jed Rakoff in Manhattan rejected the settlement in an opinion released Monday and set a trial date. He has criticized the SEC's practice of letting financial institutions such as Citigroup settle without admitting or denying liability.

    Citigroup, the third-biggest U.S. lender, agreed last month to settle a claim by the SEC that it misled investors in a $1 billion collateralized debt obligation linked to subprime residential mortgage securities. Investors lost about $700 million, according to the agency. A trial could establish conclusions that investors could use against Citigroup, as could a new settlement that includes admissions by the bank.

    Citigroup settlement with SEC rejected by judge

    Not seeing a downside to this.

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