Judge blocks Citigroup settlement With S.E.C.

Earlier this month, Judge Rakoff indicated that he had problems with the proposed settlement between the SEC and Citigroup arising from the sale of $1 billion of toxic mortgage debt. Â Today he followed through, rejecting the proposed settlement and ordered a trial.

In a written opinion, Manhattan federal court judge Jed Rakoff said the proposed settlement was “neither reasonable, nor fair, nor adequate, nor in the public interest.”