Post by account_disabled on Mar 7, 2024 9:00:18 GMT 2
A federal judge in New York rejected, this Monday a million agreement between Citigroup and the United States Securities and Exchange Commission (SEC). The settlement was intended to end a lawsuit in which the SEC accused Citigroup of causing $ million in losses to investors while making $ million in profits. Judge Jed Rakoff ordered the case to go to trial because the public has a right to know the truth. The news was published by the Huffington Post , Bloomberg Businessweek and other major US newspapers.
The SEC accused Citigroup of misleading investors in a complex system of mortgage investments. Citigroup reportedly sold US$ billion in debt guarantees linked to home equity financing in , when the real estate market was already beginning to collapse. For its part, the bank would have bet against the transaction, as a tactic to make a profit.
According to the judge, the agreement would allow Citigroup, the BTC Number Data third largest financial institution in the country, to close the case without even admitting or denying responsibility in the matter. "In any case like this, which concerns the transparency of financial markets, whose movements have severely depressed the country's economy and weakened people's lives, there is a predominant public interest in knowing the truth," said the judge.
Rakoff consolidated the case with another lawsuit filed by the SEC, which involves former Citigroup director Brian Stoker and set the trial for the combined cases for July , The parties may still try to reach a settlement. But, if this happens, the new agreement will have to be approved by the same judge.
Citigroup (or Citi) is a financial institution headquartered in New York (Manhattan) and operates in more than countries, with thousand branches and more than million customers. It controls organizations such as Citicorp, Citiholdings and Citibank. In , it suffered major losses with the financial system crisis that began in the USA and spread throughout the world, but was compensated, in November, by a huge stimulus package given by the American government to large financial institutions. Despite the global financial crisis and its losses, Citigroup accumulated financial resources worth US$ billion in – a value slightly above Sweden's GDP for the year, which was US$ billion, says Wikipedia.
The SEC accused Citigroup of misleading investors in a complex system of mortgage investments. Citigroup reportedly sold US$ billion in debt guarantees linked to home equity financing in , when the real estate market was already beginning to collapse. For its part, the bank would have bet against the transaction, as a tactic to make a profit.
According to the judge, the agreement would allow Citigroup, the BTC Number Data third largest financial institution in the country, to close the case without even admitting or denying responsibility in the matter. "In any case like this, which concerns the transparency of financial markets, whose movements have severely depressed the country's economy and weakened people's lives, there is a predominant public interest in knowing the truth," said the judge.
Rakoff consolidated the case with another lawsuit filed by the SEC, which involves former Citigroup director Brian Stoker and set the trial for the combined cases for July , The parties may still try to reach a settlement. But, if this happens, the new agreement will have to be approved by the same judge.
Citigroup (or Citi) is a financial institution headquartered in New York (Manhattan) and operates in more than countries, with thousand branches and more than million customers. It controls organizations such as Citicorp, Citiholdings and Citibank. In , it suffered major losses with the financial system crisis that began in the USA and spread throughout the world, but was compensated, in November, by a huge stimulus package given by the American government to large financial institutions. Despite the global financial crisis and its losses, Citigroup accumulated financial resources worth US$ billion in – a value slightly above Sweden's GDP for the year, which was US$ billion, says Wikipedia.