us court rules citi settlement wrongly blocked
Sunday 6 July 2025
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

US court rules Citi settlement wrongly blocked

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice US court rules Citi settlement wrongly blocked

Citibank branch at the Citigroup world headquarters on Park Avenue in New York City
New York - AFP

 A US federal appeals court Wednesday ruled that a lower court judge abused his discretion when he blocked a settlement between Citigroup and regulators over alleged mortgage-securities fraud.
The appeals court overturned a November 2011 decision by US District Judge Jed Rakoff refusing to approve a $285 million settlement of US allegations that Citigroup misrepresented its role in preparing mortgage-backed securities in which investors lost millions.
Rakoff had sharply criticized the Securities and Exchange Commission for agreeing to accept a small fine for the alleged wrongdoing that went to the heart of the 2008 financial crisis. In particular, he took issue with the settlement for not requiring Citi to admit or deny the allegations.
But the appeals court rejected Rakoff's conclusion, saying the SEC should be afforded "significant deference" in determining whether a deal serves the public interest. The SEC's decision to settle rests in part on the agency's allocation of its enforcement budget, the appeals court said.
The appeals court decision sent the case back to Rakoff, who has publicly criticized regulators for a meek response to Wall Street wrongdoing that led to the housing bust.
In the Citi case, Rakoff wrote that approving the deal would rubber-stamp an agreement that might not be in the public interest.
"In any case like this that touches on the transparency of financial markets whose gyrations have so depressed our lives, there is an overriding public interest in knowing the truth," he said. 
"The SEC, of all agencies, has a duty, inherent in its statutory mission, to see that the truth emerges; and if it fails to do so, this Court must not, in the name of deference or convenience, grant judicial enforcement to the agency's contrivances."
But the appeals court, in its decision Wednesday, said that Rakoff's conclusion requiring the SEC to determine the truth "constitutes legal error" and ordered him to determine whether the settlement serves the public interest.
"Trials are primarily about the truth," the court said. "Consent decrees are about pragmatism."
Andrew Ceresney, the SEC's enforcement director, applauded the ruling for "reaffirming the significant deference accorded to the SEC in determining whether to settle with parties and on what terms."
The ability to settle allows "regulatory agencies to serve the public interest by returning money to harmed investors more quickly, without the uncertainty and delay from litigation and without the need to expend additional agency resources."
A Citigroup spokeswoman declined comment. Rakoff's chambers said the judge would have no comment.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us court rules citi settlement wrongly blocked us court rules citi settlement wrongly blocked

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us court rules citi settlement wrongly blocked us court rules citi settlement wrongly blocked

 



GMT 05:04 2024 Tuesday ,06 February

Skincare PR Performance Full Year 2017

GMT 10:08 2018 Wednesday ,24 January

Microsoft to open 4 data centres

GMT 23:35 2017 Saturday ,14 October

HM King congratulates French President

GMT 10:32 2017 Thursday ,10 August

No. 1 Murray out of Cincinnati with hip injury

GMT 07:10 2017 Monday ,06 February

Ahmed Zaher performs surprise role in new show

GMT 08:24 2017 Thursday ,04 May

Nahyan receives Speaker of Parliament

GMT 10:45 2017 Sunday ,12 February

Lebanese actress Nour praises “Good Night” film

GMT 20:15 2017 Friday ,18 August

Kuwaiti oil price up 24 cents to US$47.65 pb

GMT 21:32 2017 Saturday ,27 May

LMRA chief meets Indian ambassador

GMT 10:00 2018 Tuesday ,16 January

Volkswagen reports record global car sales

GMT 11:08 2018 Sunday ,07 January

More than 200 migrants storm Morocco-Spain border

GMT 13:35 2017 Wednesday ,22 March

Oman shares fall taking cues from regional bourses
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice