A U.S. judge on Tuesday reluctantly approved a $285 fraud settlement between Citigroup and the U.S. Securities and Exchange Commission, two months after an appeals court voided his decision to reject it as inadequate.
U.S. District Judge Jed Rakoff said he had little choice but to approve the deal, which did not require the bank to admit to any wrongdoing. But he said he feared the 2nd U.S. Circuit Court of Appeals' decision would rob such settlements of any "meaningful oversight.''
"That court has now fixed the menu, leaving this court with nothing but sour grapes,'' he wrote in a brief opinion outlining his disappointment.