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Re: Federal Judge Blocks Citigroupâ��s Mortgage Settlement With S.E.C. 

By: clo in FFFT | Recommend this post (1)
Mon, 28 Nov 11 9:52 PM | 88 view(s)
Boardmark this board | Food For Further Thought 		Msg. 36424 of 65535
(This msg. is a reply to 36423 by clo)
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Federal Judge Blocks Citigroup’s Mortgage Settlement With S.E.C.

Correction: An earlier e-mail alert misstated the size of the settlement. It was
for $285 million, not $28 million.

A federal judge in New York on Monday threw out a settlement between the
Securities and Exchange Commission and Citigroup over a 2007 mortgage
derivatives deal, saying that the S.E.C.’s policy of settling cases by allowing
a company to neither admit nor deny the agency’s allegations did not satisfy the
law.

The judge, Judge Jed S. Rakoff of the Federal District Court in Manhattan, ruled
that the S.E.C.’s $285 million settlement, announced last month, is “neither
fair, nor adequate, nor in the public interest” because it does not provide the
court with evidence on which to judge the settlement.

The ruling could throw the S.E.C.’s enforcement efforts into chaos, because a
majority of the fraud and other cases that the agency brings against Wall Street
firms are settled out of court, most often with a condition that the defendant
does not admit that it violated the law while also promising not to deny it.

Read More:
http://www.nytimes.com/2011/11/29/business/judge-rejects-sec-accord-with-citi.html?emc=na




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The above is a reply to the following message:
Federal Judge Blocks Citigroup’s Mortgage Settlement With S.E.C.
By: clo in FFFT
Mon, 28 Nov 11 9:36 PM 		Msg. 36423 of 65535

Let's hear it for the judge!!!
it's about time!

Federal Judge Blocks Citigroup’s Mortgage Settlement With S.E.C.

A federal judge in New York on Monday threw out a settlement between the
Securities and Exchange Commission and Citigroup over a 2007 mortgage
derivatives deal, saying that the S.E.C.’s policy of settling cases by allowing
a company to neither admit nor deny the agency’s allegations did not satisfy the
law.

The judge, Judge Jed S. Rakoff of the Federal District Court in Manhattan, ruled
that the S.E.C.’s $28 million settlement, announced last month, is “neither
fair, nor adequate, nor in the public interest” because it does not provide the
court with evidence on which to judge the settlement.

The ruling could throw the S.E.C.’s enforcement efforts into chaos, because a
majority of the fraud and other cases that the agency brings against Wall Street
firms are settled out of court, most often with a condition that the defendant
does not admit that it violated the law while also promising not to deny it. 

Read More:
http://www.nytimes.com/?emc=na

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