New York, November 29 (FinanceEnquiry.com) -U.S. District Judge Jed Rakoff was not comfortable last month with the SEC’s proposed settlement with Citigroup (C) Inc. over the creation and sale of a security that will cost investors $700 million.
Yesterday Rakoff made it official: The proposed $285 million penalty seemed disproportionately small when compared with the losses, Rakoff ruled, and would keep secret crucial details of the risky instrument Citigroup was selling. He said, the proposed settlement didn’t serve the public interest as it didn’t do anything to restore faith in the financial markets. The judge ordered Citigroup and SEC to prepare for a trial in July.
As per SEC, Citigroup stuffed a $1 billion mortgage fund that it sold to investors in 2007 with securities that it believed would fail so that it could bet against its customers and profit when values declined. The fraud, the agency said, was in Citigroup’s falsely telling investor’s that an independent party was choosing the portfolio’s investments. Citigroup made $160 million from the deal and investors lost $700 million.
“We believe the proposed settlement is a fair and reasonable resolution to the SEC’s allegation of negligence, which relates to a five-year-old transaction,” Edward Syler, a Citigroup spokesman, said in a statement. “We also believe the settlement fully complies with long established legal standards. In the event the case is tried, we would present substantial factual and legal defenses to the charges. ”
New York, June 18 (FinanceEnquiry.com) – Analysts at Deutsche Bank Securities reiterate their HOLD rating on the shares of Cliffs Natural Resources Inc (NYSE: CLF). The 12-month target price is set to...LG Optimus F3 LS720: All Set to Tempt Buyers - June 18, 2013
New York, June 18 (FinanceEnquiry.com) – Anytime in this month, LG Optimus F3 LS720 can arrive in the mobile stores. The brand new sensation has been created in the wider and broader dimensions that...Pantech Flex P8010: Turning Dreams into Reality - June 18, 2013
New York, June 18 (FinanceEnquiry.com) – The Mini-SIM holding Pantech Flex P8010 was released last year in September. Dimensions of the handset are visible as 129.8 x 67.1 x 7.9 mm (5.11 x 2.64 x 0.31...Spice Mi-422 Smartflo Pace: Maintaining Speed with Outside World - June 17, 2013
New York, June 17 (FinanceEnquiry.com) – In view of the fact that traders desisted large steps prior to an important meeting of US central bank policymakers afterward in the week, oil costs slipped on the very...Deutsche Bank Securities Reiterates BUY Rating on Apple Inc (NASDAQ: AAPL) - June 11, 2013
In a...Motorola Motoluxe XT389: It’s so Grand! - June 5, 2013
New York, May 30 (FinanceEnquiry.com) – Selecting out the best and useful mobile phones is not a big deal, especially when users are able to differentiate between required features and unwanted ones...