SEC v. Citigroup: Court of Appeals Benchslaps Judge Rakoff's Refusal To Approve Settlement
mitchellepner.substack.com
In November 2011, Judge Jed Rakoff of the United States District Court for the Southern District of New York refused to approve a $285 million settlement of the SEC's charges against Citigroup regarding the marketing of subprime securities. The allegations in the case were that Citigroup had (1) selected the subprime securities to be included in fund, (2) falsely marketed the fund to its clients saying that the assets had been selected by an independent third party, and (3) then secretly shorted [bet against] the fund, reaping a profit of $160 million while its clients lost $700 million. Judge Rakoff refused to
SEC v. Citigroup: Court of Appeals Benchslaps Judge Rakoff's Refusal To Approve Settlement
SEC v. Citigroup: Court of Appeals Benchslaps…
SEC v. Citigroup: Court of Appeals Benchslaps Judge Rakoff's Refusal To Approve Settlement
In November 2011, Judge Jed Rakoff of the United States District Court for the Southern District of New York refused to approve a $285 million settlement of the SEC's charges against Citigroup regarding the marketing of subprime securities. The allegations in the case were that Citigroup had (1) selected the subprime securities to be included in fund, (2) falsely marketed the fund to its clients saying that the assets had been selected by an independent third party, and (3) then secretly shorted [bet against] the fund, reaping a profit of $160 million while its clients lost $700 million. Judge Rakoff refused to