SEC Policy Challenged in Judge’s Rejection of Citigroup Deal
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The Securities and Exchange Commission’s policy of letting financial institutions settle enforcement actions without admitting liability was challenged by a judge who rejected its $285 million Citigroup Inc. accord.
U.S. District Judge Jed Rakoff in Manhattan rejected the settlement in a decision yesterday, citing the public interest in learning the truth about SEC allegations that the bank defrauded investors in a $1 billion collateralized debt obligation linked to bad residential mortgages.