Judge Questions Citi's $285M CDO Deal With SEC

Law360, New York (October 27, 2011, 4:13 PM EDT) -- A New York federal judge known for scrutinizing U.S. Securities and Exchange Commission settlements on Thursday questioned the agency's proposed $285 million deal with Citigroup Inc. to resolve securities fraud allegations over the sale of a $1 billion collateralized debt obligation linked to mortgages.

U.S. District Judge Jed S. Rakoff said the court was responsible for weighing whether the proposed judgment against Citigroup was “fair, reasonable, adequate and in the public interest,” and posed nine questions that he wanted answered during a Nov. 9 hearing on...
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