Judge rejects Citigroup's $75 million settlement with SEC

[UpInArms]

Source: Washington Post

A federal judge on Monday refused to accept a $75 million settlement between the Securities and Exchange Commission and Citigroup, the second time in a year that the agency's attempt to sanction a major bank was foiled by a judge with questions about the appropriateness of the agreement.

Judge Ellen S. Huvelle of the U.S. District Court of the District of Columbia raised questions during a hearing Monday about why the SEC chose to penalize Citigroup financially when it's the company's shareholders who will ultimately bear the price of the sanction, according to lawyers who were present. She also asked why the agency decided to charge only two executives with wrongdoing when other more senior executives were involved with Citigroup's actions, the lawyers said.

Huvelle demanded more information from SEC and Citigroup and scheduled another hearing for Sept. 24.

Last month, the SEC charged Citigroup with misleading investors about nearly $40 billion of its holdings in subprime mortgage investments in 2007.

The SEC, in a separate administrative venue, charged former chief financial officer Gary L. Crittenden and former investor relations head Arthur Tildesley with concealing important information from investors in regulatory disclosures in the second and third quarters of 2007.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/08/16/AR2010081604807.html

[Zenlitened]

1. K and enthusiastic R. - n/t

[Ignis]

2. K&R

The SEC, in a separate administrative venue, charged former chief financial officer Gary L. Crittenden and former investor relations head Arthur Tildesley with concealing important information from investors in regulatory disclosures in the second and third quarters of 2007.

Settlement?! How about we prosecute these assholes to the full extent of the law for a change?

[UpInArms]

3. well, yeah - when do the criminal proceedings begin?

or are we still looking forward?

[Ignis]

4. Oh, I'm sure we're still keeping our powder dry.

Real fucking dry.