According to The New York Times,
A judge on Monday rejected a proposed $285 million settlement between Citigroup Inc and the top U.S. market regulator over the sale of toxic mortgage debt 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.”
The rejection was not a surprise since the judge had made clear at a November 9 hearing that he had major problems with the proposal.
The U.S. Securities and Exchange Commission accused Citigroup of selling a $1 billion mortgage-linked collateralized debt obligation, Class V Funding III, in 2007 as the housing market was beginning to collapse, and then betting against the transaction.
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