Southern District Judge Tosses Proposed SEC-Citi Settlement
A $285 million settlement between the Securities and Exchange Commission and Citigroup was rejected by Southern District Judge Jed Rakoff. The proposal was over the marketing of security debt obligations that the bank was also selling short. Rakoff believed Citi had formed a billion-dollar fund which allowed it to plunk some uncertain assets on misinformed investors. According to Rakoff, the firm would have been allowed to settle the case without admitting wrongdoing.