Court limits judge’s say over $285M Citigroup deal

LARRY NEUMEISTER AP

NEW YORK (AP) — A judge overstepped his authority when he blocked a $285 million settlement between Citigroup Inc. and government regulators over toxic mortgage securities, a federal appeals court panel said Wednesday.

The 2nd U.S. Circuit Court of Appeals in Manhattan reversed a decision by Judge Jed S. Rakoff to set a trial date for the case brought by the Securities and Exchange Commission in October 2011.

A three-judge panel said the SEC had demonstrated it would face irreparable harm because the judge refused to reconsider his rejection of the settlement as he set a July 2012 trial date.

The settlement between the SEC and Citigroup came after the commission accused the bank of betting against a complex mortgage investment in 2007. It said the company made $160 million while investors lost millions.

http://www.salon.com/2014/06/04/court_limits_judges_say_over_285m_citigroup_deal/