A federal judge blocked what would have been a $285 million mortgage settlement between Citigroup and the Securities and Exchange Commission, according to a tweet from The New York Times.
If the deal had passed muster, it would have settled accusations that the bank misled mortgage investors when selling securities, according to a separate NYT report. Jed Rakoff, the judge that blocked the settlement, criticized the SEC's enforcement practices at a hearing on the settlement earlier this month."Doesn't the S.E.C. have an interest in what the truth is?" Rakoff reportedly asked at the hearing.