Volume 2014 - Number 22
June 6, 2014
Appeals Court Rebuffs Trial Court Judge’s Rejection Of SEC-Citi MBS Deal; S&P Lawsuits Sent Back to States
A New York federal judge was out of line and beyond his discretionary authority when he rejected the Securities and Exchange Commissionís proposed $285 million settlement with Citigroup in 2011 stemming from the bankís alleged mishandling of MBS, an appeals court ruled this week. A three-judge panel of the U.S. Second Circuit Court of Appeals vacated the district courtís order, holding that Judge Jed Rakoff of the Southern District of New York abused his discretion by applying an incorrect legal standard to his review of the settlement. Rakoff refused to accept the deal between the SEC and Citi because it did not contain an admission or denial of guilt. The appeals court held...
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This weekly covers the secondary mortgage market, including mortgage-backed securities and asset-backed securities.
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