{"id":5638,"date":"2014-08-05T00:00:00","date_gmt":"2014-08-05T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2014\/08\/judge_rakoff_approves_citigrou"},"modified":"2022-03-11T13:24:00","modified_gmt":"2022-03-11T19:24:00","slug":"judge-rakoff-approves-citigrou","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/judge-rakoff-approves-citigrou\/","title":{"rendered":"Judge Rakoff Approves Citigroup\u2019s $285M Mortgage Securities Fraud Deal with the SEC"},"content":{"rendered":"\n

Two months after the Second U.S. Circuit of Appeals ruled that he had made a mistake in blocking the $285 million mortgage securities fraud <\/a>settlement between Citigroup (C)<\/a> and the SEC, U.S. District Judge Jed Rakoff has approved the deal. Rakoff had originally refused to allow the agreement to go through in 2011, chastising the regulator for letting the firm settle without having to admit wrongdoing.<\/p>\n

Following his decision, other judges followed his lead and began questioning certain SEC settlements. The regulator went on to modify a longstanding, albeit unofficial, policy of letting companies settle without having to deny or admit wrongdoing. <\/p>\n

Even though Rakoff is approving the deal now, he was clear to articulate his reluctance. In his latest opinion he wrote that he worries that because of the Second Circuit\u2019s ruling, settlements with governmental regulatory bodies, and enforced by the contempt powers of the judiciary, will not have to contend with any meaningful oversight. However, Rakoff said that if he were to ignore the Court of Appeals\u2019 dictates this would be a \u201cdereliction of duty.\u201d Nonetheless, he noted that approving this settlement has left his court with \u201csour grapes.\u201d <\/p>\n

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

Two months after the Second U.S. Circuit of Appeals ruled that he had made a mistake in blocking the $285 million mortgage securities fraud settlement between Citigroup (C) and the SEC, U.S. District Judge Jed Rakoff has approved the deal. Rakoff had originally refused to allow the agreement to go through in 2011, chastising the […]<\/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":[3820,3752,4001,3757],"tags":[],"class_list":["post-5638","post","type-post","status-publish","format-standard","hentry","category-citigroup","category-financial-firms","category-mortgage-fraud","category-mortgagebacked-securities"],"yoast_head":"\nJudge Rakoff Approves Citigroup\u2019s $285M Mortgage Securities Fraud Deal with the SEC — Investor Lawyers Blog — August 5, 2014<\/title>\n<meta name=\"description\" content=\"Two months after the Second U.S. Circuit of Appeals ruled that he had made a mistake in blocking the $285 million mortgage securities fraud settlement — August 5, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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