SEC v. Citigroup - 2d Cir.: Rakoff settlement rejection unlikely to succeed

John Walker, Circuit Judge

Ruling Gives Edge to U.S. in Its Appeal of Citi Case - NYTimes.com: 
A panel of the United States Court of Appeals for the 2d Circuit sharply scored District Judge Jed Rakoff's rejection of the settlement proposed by the SEC and Citigroup Global Markets.  The case arises from Citigroup's work as an investment bank.  Citi did not disclose to buyers of CDOs - bets on residential mortgage backed securities - that Citigroup Global Markets itself was on the other side of the bet.
Rakoff had ordered the parties to proceed to a June trial.  On March 15 that order was stayed by the 2d Circuit which found that Rakoff's order was unlikely to  prevail on appeal. 

Jed Rakoff, D.J.

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