Hi there,

From our first broadcast nearly 30 years ago, Democracy Now! has always been fiercely independent. Over these last 3 decades, our daily global news hour has been a source of truth in a media landscape all too often bought by commercial interests. Can you start a monthly donation? Monthly donations are the lifeblood of Democracy Now!.Thanks to a group of generous donors, all monthly donations started today will be DOUBLED, which means your $15 gift is worth $30. If you believe that freedom of speech and freedom of the press are essential to the functioning of a democratic society, please donate today. Every dollar makes a difference. Thank you so much.

Democracy Now!
Amy Goodman

Non-commercial news needs your support.

We rely on contributions from you, our viewers and listeners to do our work. If you visit us daily or weekly or even just once a month, now is a great time to make your monthly contribution.

Please do your part today.

Donate

Appeals Court Overturns Rejection of Citigroup-SEC Settlement

HeadlineJun 05, 2014

A federal appeals court has overturned a lower court’s rejection of a proposed $285 million settlement between Citigroup and the Securities and Exchange Commission over Citigroup’s sale of toxic mortgage debt. In a major decision three years ago, District Court Judge Jed Rakoff said the proposed settlement was “neither reasonable, nor fair, nor adequate, nor in the public interest” and “pocket change to any entity as large as Citigroup.” The SEC had accused Citigroup of selling $1 billion of deceptive mortgage-backed securities in 2007 just as the nation’s housing bubble was about to burst. Citigroup made $160 million in profits on the transaction, while investors lost $700 million. Rakoff’s decision stood to have a major impact on how the SEC settles cases with major banks. But on Wednesday, the 2nd U.S. Circuit Court of Appeals said Rakoff “abused [his] discretion by applying an incorrect legal standard.” The overturning of Rakoff’s decision means the settlement will likely be approved.

The original content of this program is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License. Please attribute legal copies of this work to democracynow.org. Some of the work(s) that this program incorporates, however, may be separately licensed. For further information or additional permissions, contact us.

Non-commercial news needs your support

We rely on contributions from our viewers and listeners to do our work.
Please do your part today.
Make a donation
Top