After Long Fight, Judge Rakoff Reluctantly Approves Citigroup Deal.

[elleng]

The settlement that just wouldn’t settle – Citigroup’s 2011 deal with the Securities and Exchange Commission – has finally cleared its last hurdle.

Judge Jed S. Rakoff of Federal District Court in Manhattan, who initially rejected the $285 million settlement as “pocket change to any entity as large as Citigroup,” announced on Tuesday that he would reluctantly approve the deal.

The decision comes on the heels of an appellate court ruling that undercut Judge Rakoff’s concerns that Citigroup had secured a sweetheart deal. In June, a three-judge panel of the United States Court of Appeals for the Second Circuit overturned Judge Rakoff, concluding that he “abused” his discretion “by applying an incorrect legal standard” to the case. The appellate court sent the case back to Judge Rakoff.

But even as he approved the deal, Judge Rakoff still managed to land a few jabs in his opinion.

“It would be a dereliction of duty for this court to seek to evade the dictates of the court of appeals,” Judge Rakoff wrote. The judge, known for his quick wit and distaste for financial fraud, added that the appeals court “has now fixed the menu, leaving this court with nothing but sour grapes.”

http://dealbook.nytimes.com/2014/08/05/after-long-fight-judge-rakoff-reluctantly-approves-citigroup-deal/?_php=true&_type=blogs&hp&action=click&pgtype=Homepage&version=HpBlogHeadline&module=second-column-region&region=top-news&WT.nav=top-news&_r=0

[Fred Sanders]

1. Eat your sour grapes, Judge, the corporate Judges out vote you at a higher table....more menus soon.