A US judge has rejected a $285m settlement between Citigroup and Wall Street’s regulator, the SEC, over the sale of toxic mortgages.
Federal court judge Jed Rakoff ordered a trial, saying the settlement was “neither reasonable, nor fair, nor adequate, nor in the public interest”.
The SEC claimed Citigroup sold $1bn worth of mortgage assets and then bet that their value would fall.
Neither the SEC nor the US’s third-largest bank had any immediate comment.
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