WASHINGTON — 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, Jed S. Rakoff of United States District Court in Manhattan, ruled that the S.E.C.’s $285 million settlement, announced last month, is “neither fair, nor reasonable, nor adequate, nor in the public interest” because it does not provide the court with evidence on which to judge the settlement. […]
The above news article appears on today’s New York Times Website in the Business Day section. And that same article can be read and printed at the related DEALBOOK site. DealBook highlights two paragraphs that should be “must reading” for Americans .
Judge Rakoff spoke of derivatives and the public interest. America’s CURRENT EVENTS news pool don’t hear those expressions much any more. Judge Rakoff’s “paper trail” ought to lead straight to the United States Supreme Court.
[Joejolly is not yet as handy with web page links as he will be. He is in a whole new operating system environment since leaving Microsoft Vista. But things are even better than joejolly last recalls.]
Tags: derivatives, federal judge, jed s. rakoff, judge blocks citigroup settlement, public trust, s.e.c.
