This week federal judge Jed S. Rakoff rejected a $285 million settlment between Citigroup and the SEC. The rejected settlement concerned Citigroup’s selling of toxic mortgage securities to investors back in 2007. Allegedly, Citigroup knew these were bad investments so they bet against their own customers resulting in $160 million in profit for Citigroup and $700 million in losses for investors.
Judge Rakoff seemed particularly irked that the SEC’s settlement agreement did not require Citigroup to admit any guilt or wrongdoing regarding this matter.
Or perhaps the judge was just angry upon realizing he had zero use for the weather balloon he was going to receive with all his Citi “Thank You Points”.