NYC judge rejects $285M SEC-Citigroup agreement
(CBS/AP) NEW YORK - A federal judge on Monday struck down a $285 million settlement that Citigroup reached with the Securities and Exchange Commission, saying he couldn’t tell whether the deal was fair and criticizing regulators for shielding the public from the details of what the firm did wrong.
U.S. District Judge Jed Rakoff said the public has a right to know what happens in cases that touch on “the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives.” In such cases, the SEC has a responsibility to ensure that the truth emerges, he wrote.
Finally, a judge is asserting that without juridically relevant facts, he is unable to affirm or render a judicial opinion on regulatory settlements. He is correct to do so, and I hope he will be able to stand up to the accusations of judicial activism and the partisan pressure he will surely experience.