Judge Rejects Citigroup Settlement Over Toxic Mortgages

Tuesday, November 29, 2011

A federal judge rejected a $285 million settlement between Citigroup and the Securities and Exchange Commission, objecting to the practice of allowing banks to settle fraud cases without admitting guilt. Citi may now face a trial over the sale of toxic mortgages which cost investors millions but made the bank profit. The judge said the public has a right to "the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives."

Louise Story, Wall Street and finance reporter for The New York Times, and Michael Koehler, assistant professor of business law at Butler University, discuss the legal implications of the ruling.


Michael Koehler and Louise Story

Comments [1]

carl, queens, n.y.

the s.e.c said, the reason they settle cases, instead of prosecuting banks,etc, is because they don't have the money or the staff to prosecute.. this is precisely why these fraudulent business dealings will continue.. the s.e.c. should either find the money, or put a lock on the door.. at least we'll know where we stand.. when i asked by brother, 30 years ago, why he don't invest in the stock market, he ansered, ''because you gotta be in with the thieves''..was he right , or was he correct?

Nov. 29 2011 10:48 AM

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