2nd Circ. Needles Rakoff Over $285M SEC-Citi Deal

Law360, New York (March 15, 2012, 1:35 PM EDT) -- The Second Circuit on Thursday backed the U.S. Securities and Exchange Commission's controversial practice of settling claims against defendants that neither admit nor deny allegations, sharply criticizing U.S. District Judge Jed S. Rakoff for rejecting a $285 million mortgage-backed securities deal with Citigroup Inc. on those grounds.

A three-judge panel granted the SEC’s motion to stay the case in New York federal court as the agency appeals Judge Rakoff's rejection of the settlement in November. The appeals court did not issue a final ruling on the...
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