SEC, Citi Rip Rakoff In Bid To Restore $285M MBS Settlement

Law360, New York (May 15, 2012, 5:57 PM EDT) -- The U.S. Securities and Exchange Commission and Citigroup Inc. on Monday ripped U.S. District Judge Jed S. Rakoff for rejecting their $285 million mortgage-backed securities settlement, calling his decision unprecedented and unwise as the unlikely bedfellows asked the Second Circuit to restore the deal.

The bank and its regulator echoed each other in separate briefs filed with the appellate court, arguing that the judge had ignored precedent and overstepped his authority by refusing to accept the deal. Judge Rakoff tossed the settlement in November because Citigroup...
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