Judge Rejects Citigroup Settlement Over Toxic Mortgages

The Takeaway

A federal judge  rejected  a $285 million settlement between Citigroup and the Securities and Exchange Commission, objecting to the practice of allowing banks to settle fraud cases without admitting guilt. Citi may now face a trial over the sale of  toxic mortgages  which cost investors millions but made the bank profit. The judge  said  the public has a right to “the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives.” Louise Story, Wall Street and finance reporter for The New York Times, and  Michael Koehler, assistant professor of business law at Butler University, discuss the legal implications of the ruling.

Will you support The World?

The story you just read is not locked behind a paywall because listeners and readers like you generously support our nonprofit newsroom. Now more than ever, we need your help to support our global reporting work and power the future of The World. Can we count on you?