Judge Rakoff would feel a lot better about this if someone from Citi could be compelled to just admit they engaged in fraud; to have them say, “Guilty, your honor.” Sure, the $285 million they’ll be forking over sort of suggests as much on its own but just for fucking once, it’d be nice to hear someone say it.
A U.S. judge on Tuesday reluctantly approved a $285 million fraud settlement between Citigroup Inc and the U.S. Securities and Exchange Commission, two months after an appeals court voided his decision to reject it as inadequate. U.S. District Judge Jed Rakoff said he had little choice but to approve the deal, which did not require the bank to admit to any wrongdoing. But he said he feared the 2nd U.S. Circuit Court of Appeals’ decision would rob such settlements of any “meaningful oversight.” “That court has now fixed the menu, leaving this court with nothing but sour grapes,” he wrote in a brief opinion outlining his disappointment…Rakoff had objected to the SEC’s decades-old practice of letting some corporate defendants settle allegations without admitting or denying the charges, a decision that is credited with altering the public debate over such deals…The SEC complaint against Citigroup concerned a 2007 sale of mortgage-linked securities debt that caused more than $700 million of investor losses.