Streams

NYC Judge Stands Behind SEC-Citigroup Ruling

Tuesday, December 27, 2011

A New York City judge says his decision blocking a $285 million settlement over toxic mortgage securities should stand.

A ruling Tuesday by Federal Judge Jed Rakoff denied a request by the Securities and Exchange Commission and Citigroup to put the federal case on hold while both sides appeal.

Rakoff said he wouldn't agree to stay his ruling - issued last month - because their reasoning for an appeal was "patently defective."

The SEC had accused Citigroup of betting against a complex mortgage investment in 2007. It said the firm made $160 million in the process while investors lost millions.

The settlement would have imposed penalties on Citigroup but allowed it to deny allegations that it misled investors. Rakoff criticized the deal for allowing the firm to hide its misdeeds.

Tags:

More in:

News, weather, Radiolab, Brian Lehrer and more.
Get the best of WNYC in your inbox, every morning.

Leave a Comment

Register for your own account so you can vote on comments, save your favorites, and more. Learn more.
Please stay on topic, be civil, and be brief.
Email addresses are never displayed, but they are required to confirm your comments. Names are displayed with all comments. We reserve the right to edit any comments posted on this site. Please read the Comment Guidelines before posting. By leaving a comment, you agree to New York Public Radio's Privacy Policy and Terms Of Use.

Sponsored

Latest Newscast

 

 

Support

WNYC is supported by the Charles H. Revson Foundation: Because a great city needs an informed and engaged public

Feeds

Supported by