Rakoff War On Bank Deals May Force SEC's Hand

Law360, New York (November 28, 2011, 1:06 PM EST) -- With Judge Jed S. Rakoff’s stinging rejection of the U.S. Securities and Exchange Commission's $285 million mortgage-backed securities settlement with Citigroup Inc. on Monday, the agency will now have a far tougher standard to meet for no admit, no deny deals going forward, attorneys say.

The SEC and Citigroup agreed in October to settle a case over the packaging and sale of a collateralized debt obligation stuffed with subprime mortgages that the company allegedly knew would fail, all the while making a side-bet against the securities....
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