Citi, SEC Lash Back At Rakoff Over Rejected $285M MBS Deal

Law360, Wilmington (September 14, 2012, 10:11 PM EDT) -- Both Citigroup Inc. and the U.S. Securities and Exchange Commission on Thursday fired back at a federal judge who had rejected a $285 million mortgage-backed security settlement between the two, telling the Second Circuit the judge is backpedaling from the true implications of his ruling.

U.S. District Judge Jed Rakoff tossed the settlement in November, blasting the parties for offering no supporting evidence and calling into question the SEC’s longstanding practice of settling claims against defendants that neither admit nor deny allegations. The pact would have...
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