Southern District Judge Jed S. Rakoff (See Profile) yesterday rejected a proposed $285 million settlement between the Securities and Exchange Commission and Citigroup over the marketing of collateralized debt obligations the bank was also selling short.

Judge Rakoff said Citigroup created a billion-dollar fund “that allowed it to dump some dubious assets on misinformed investors” but was allowed to settle the case with no admission of wrongdoing. There was “an overriding public interest in knowing the truth,” he said, and he would not approve the settlement without some “cold, hard, solid facts.”

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]