The Citigroup Settlement: the SEC Responds to the Court

On Wednesday, November 7, 2011 Judge Rakoff will hold a hearing on the proposed settlement in SEC v. Citigroup Global Markets Inc., 11 Civ. 07387 (S.D.N.Y.). This is the Commission's latest, significant market crisis case ( here ). In anticipation of the hearing, and in response to a series of...

The Battle Lines are Drawn over the Citigroup Settlement

The battle lines have been drawn over the proposed settlement in the SEC's action against Citigroup Global Markets, Inc. SEC v. Citigroup Global Markets, Inc., Civil Action No. 1:11-cv-07387 (S.D.N.Y.) ( here ). Judge Rakoff entered an order posing a series of questions to the parties ( here ...

SEC – Citigroup Settlement Is Rejected by the Court

"But the S.E.C., of all agencies, has a duty, inherent in its statutory mission, to see that the truth emerges; and if it fails to do so, the Court must not, in the name of deference or convenience, grant judicial enforcement to the agency's contrivances." With these words Judge Rakoff...

A Closer Look at Judge Rakoff's Rejection of the SEC's Settlement with Citigroup

In a strongly worded November 28, 2011 opinion ( here ), Southern District of New York Judge Jed Rakoff rejected the proposed $285 million settlement of the enforcement action that the SEC brought against Citigroup Capital Markets. But while he emphatically rejected the proposed settlement, his opinion...

New York Federal Judge Rejects Settlement Of Citigroup Market Crisis Case

"But the S.E.C., of all agencies, has a duty, inherent in its statutory mission, to see that the truth emerges; and if it fails to do so, the Court must not, in the name of deference or convenience, grant judicial enforcement to the agency's contrivances." With these words Judge Rakoff...

Judge's Rejection Of Citigroup Settlement Suggests How SEC Might Salvage Situation

In a strongly worded November 28, 2011 opinion ( here ), Southern District of New York Judge Jed Rakoff rejected the proposed $285 million settlement of the enforcement action that the SEC brought against Citigroup Capital Markets. But while he emphatically rejected the proposed settlement, his opinion...

2nd Circuit Rejects Judge Rakoff's Reasoning In Denying Citigroup Settlement

In a sharply worded March 15, 2012 per curiam opinion ( here ), a three-judge panel of the Second Circuit granted the motions of Citigroup and the SEC to stay district court proceedings in the SEC's enforcement action against the company, so that the appellate court could consider the merits of the...

The Week in Securities Litigation: SEC Issues Record Number Of Trading Suspensions

The Commission issued a record number of trading suspensions for one day this week as part of an on-going effort to prevent microcap manipulations. A House Committee heard testimony from the Director of the Enforcement Division on its long standing policy of settling cases on a neither admit nor deny...