Inside Rakoff's Rejection Of SEC-Citigroup Settlement

Law360, New York (November 30, 2011, 6:22 PM EST) -- U.S. District Court Judge Jed S. Rakoff’s recent opinion rejecting a proposed settlement between the U.S. Securities and Exchange Commission and Citigroup Global Markets Inc. (CGMI), the principal broker-dealer subsidiary of Citigroup Inc., could significantly affect the SEC enforcement. Simultaneously with the filing of the SEC’s complaint against CGMI (the “Complaint”), the SEC and CGMI program submitted a proposed consent judgment to Judge Rakoff.

The SEC, like many federal agencies, has long had a practice of resolving civil enforcement actions through the entry of judgments in...
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