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SEC defends rejected $285 million Citigroup settlement with SEC over mortgage investment
NEW YORK (AP) ' The Securities and Exchange Commission is defending its $285 million settlement with Citigroup after a New York judge struck down the deal.
SEC Enforcement Director Robert Khuzami (COO'-zahm-ee) said in a statement that Judge Jed Rakoff made too much in a ruling Monday out of the fact that Citigroup was not required to admit any wrongful conduct in the deal.
Khuzami says forcing Citigroup to give up its profits and the imposition of financial penalties and mandatory business reforms outweigh the absence of an admission.
He says the amount the SEC secured from Citigroup in the deal is about what it could get after a successful trial.
The SEC had accused the bank of betting against a complex mortgage investment in 2007 while investors lost millions.