SEC: Settlement with Citigroup fair, adequate and reasonable
08 Nov 2011
Citigroup Inc and the US Securities and Exchange Commission have defended their $285 million settlement of claims on charges that the bank misled investors in collateralised debt obligations.
The SEC, responding to questions raised by US district judge Jed Rakoff in Manhattan, today termed the settlement with Citigroup ''fair, adequate and reasonable,'' and said the settlement should be approved by the court.
Rakoff has scheduled a hearing on the settlement 9 November.
According to the SEC, the proposed settlement reasonably reflected the scope of relief likely to be obtained by the commission under the applicable law if successful, at a trial on the merits.
It added, the settlement allowed the commission to devote resources that may have been required for the matter to investigate other fraud and misconduct.
Earlier, Rakoff had in 2009, rejected a $33 million settlement between the agency and Bank of America Corp.