Citigroup’s rotten bonds have left a New York judge with sour grapes.
The New York Post reports that Manhattan federal judge Jed Rakoff on Tuesday begrudgingly approved the banking giant’s $285m settlement with the Securities and Exchange Commission over the sale of toxic mortgage-backed securities after an appeals court overruled his 2011 decision to reject the deal.
Rakoff — sick of Wall Street firms getting little more than a slap on the wrist — launched his crusade against the SEC and others for settling cases without demanding an admission of wrongdoing or any executives taking the fall.
Although his standoff with the SEC won him fans, a federal appeals court ruled in June that he was out of bounds and 'abused' his discretion 'by applying an incorrect legal standard' to the case. The court sent the case back to Rakoff, giving him no choice but to approve the deal.
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