New York, NY, United States (AHN) – Federal Judge Jed Rakoff on Monday rejected a $285 million settlement Citigroup had reached with the Securities and Exchange Commission over mortgage investments citing a need for truth about the financial markets.
The deal would have imposed penalties on Citigroup even as it allowed the financial institution to deny allegations regarding a complex mortgage investment.
The SEC has accused Citi of betting against the investment in 2007 and reaping $160 million on the bet while investors lost millions.
The N.Y. judge wrote that there is an overriding public interest in knowing the truth about the financial markets.
The judge set a July 16 trail date for the case.
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