{"id":1459,"date":"2014-06-04T17:00:19","date_gmt":"2014-06-04T17:00:19","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/06\/second_circuit_overturns_decis"},"modified":"2022-03-11T10:18:38","modified_gmt":"2022-03-11T16:18:38","slug":"second-circuit-overturns-decis","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/second-circuit-overturns-decis\/","title":{"rendered":"Second Circuit Overturns Judge’s Decision to Block Citigroup’s $285M Settlement With the SEC"},"content":{"rendered":"

\t\t\t\tThe Second Circuit appeals court said that District Judge Jed Rakoff abused his discretion when he rejected the $285 million mortgage settlement between the SEC and Citigroup (C)<\/a>. The regulator accused Citigroup of selling sections of Class V Funding III, a $1 billion mortgage-bond deal<\/a>, without revealing that the bank was betting against $500 million of the assets. <\/p>\n

Rakoff, a district court judge, said that he partially blocked the settlement because he didn’t agree with a Commission practice in which the party involved gets to resolve a case without denying or admitting to wrongdoing. Last year the SEC reversed its policy that automatically lets companies settle without making a wrongdoing admission. Now, the regulator is compelling admissions in cases that are especially egregious. Also, following Rakoff’s ruling, other judges followed his lead in a number of lawsuits. <\/p>\n

This week, however, the appeals court said that the Commission should be granted wide deference when it is deciding whether or not a case should go to trial or settle. The three-judge panel said the deal between the SEC and Citigroup was in the interest of the public. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Second Circuit appeals court said that District Judge Jed Rakoff abused his discretion when he rejected the $285 million mortgage settlement between the SEC and Citigroup (C). The regulator accused Citigroup of selling sections of Class V Funding III, a $1 billion mortgage-bond deal, without revealing that the bank was betting against $500 million […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3820,3752],"tags":[],"class_list":["post-1459","post","type-post","status-publish","format-standard","hentry","category-citigroup","category-financial-firms"],"yoast_head":"\nSecond Circuit Overturns Judge's Decision to Block Citigroup's $285M Settlement With the SEC — Investor Lawyers Blog — June 4, 2014<\/title>\n<meta name=\"description\" content=\"The Second Circuit appeals court said that District Judge Jed Rakoff abused his discretion when he rejected the $285 million mortgage settlement between — June 4, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, 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