Citigroup settlement with SEC rejected

Federal judge blocks $285 million settlement proposal, prevents frequent SEC practice

A federal judge challenged a decades-old practice of the Securities and Exchange Commission (SEC) Monday, by rejecting a $285 million settlement between the SEC and Citigroup.

In recent cases involving Wall Street giants such as Bank of America, JPMorgan Chase and UBS, the SEC allowed the companies to settle cases without admitting any wrongdoing. For Citigroup, however, Judge Jed S. Rakoff of the U.S. District Court in Manhattan prevented a settlement in his 15-page ruling.

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