Citigroup-SEC Settlement Rejected by New York Judge

Guardian UK - Citigroup faces a day of reckoning in court after a New York judge struck down a $285m settlement the bank reached with its financial regulator, arguing that the deal obscured an "overriding public interest in knowing the truth."

Last month Citigroup agreed to settle claims that it misled clients in a $1bn collateralised debt obligation (CDO), an investment linked to sub-prime residential mortgages. Investors lost about $700m from the CDO, according to the Securities and Exchange Commission (SEC), while the bank made $160m in fees and trading profits.  Read more.

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