News and Finance

Many retailers are reporting solid sales gains for December, capping a decent holiday season.
But merchants relied on heavy discounting to get shoppers to buy in […]

+%3Cp%3E+The+Securities+and+Exchange+Commission+is+appealing+a+federal+judge%27s+decision+last+month+to+toss+out+a+proposed+%24285+million+mortgage+securities+fraud+settlement+between+the+agency+and+Citigroup.%3C%2Fp%3E%3Cp%3EFederal+judge+Jed+Rakoff+ruled+on+Nov.+28+that+the+deal+between+the+SEC+and+Citi+was+%26quot%3Bneither+fair%2C+nor+reasonable%2C+nor+adequate%2C+nor+in+the+public+interest%26quot%3B+and+ordered+the+case+to+proceed+to+trial+in+July+2012.+%3C%2Fp%3E%3Cp%3E%3Cp%3E%3C%2Fp%3E%3Cp%3E%3Cp%3E%3C%2Fp%3E%3C%2Fp%3E%3C%2Fp%3E%3Cp%3EHe+said+that+the+settlement+announced+in+October%2C+under+which+Citigroup+%28%2C+Fortune+500%29+neither+admitted+nor+denied+the+SEC%27s+allegations%2C+deprived+the+public+%26quot%3Bof+ever+knowing+the+truth+in+a+matter+of+obvious+public+importance.%26quot%3B+%3C%2Fp%3E%3Cp%3EThe+SEC+argued+in+a+statement+Thursday+that+the+ruling+%26quot%3Binadvertently+harms+investors+by+depriving+them+of+substantial%2C+certain+and+immediate+benefits.%26quot%3B%3C%2Fp%3E%3Cp%3E%26quot%3BWe+believe+the+court+was+incorrect+in+requiring+an+admission+of+facts+–+or+a+trial+–+as+a+condition+of+approving+a+proposed+consent+judgment%2C%26quot%3B+said+the+agency.+It+argued+Rakoff%27s+ruling+would+set+a+new+standard+for+settlements+that+would+be+difficult+to+reach+and+that+it+is+at+odds+with+established+practice.%3C%2Fp%3EBig+bank+SEC+settlements%3A+Toothless+face-savers%3F%3Cp%3E%26quot%3BCourts+have+routinely+approved+settlements+in+which+a+defendant+does+not+admit+or+even+expressly+denies+liability%2C+exactly+because+of+the+benefits+that+settlements+provide%2C%26quot%3B+said+the+agency.+%3C%2Fp%3E%3Cp%3EThe+SEC+said+the+%24285+million+proposed+settlement%2C+%26quot%3Bwhile+less+than+investor+losses%2C+represents+most+of+the+total+monetary+recovery+that+the+SEC+itself+could+have+sought+at+trial.+An+SEC+settlement+does+not+limit+the+ability+of+injured+investors+to+pursue+claims+for+additional+relief.%26quot%3B%3C%2Fp%3E%3Cp%3ERakoff+said+in+his+ruling+that+given+the+damage+done+to+financial+markets+by+the+alleged+actions+by+Citigroup%2C+a+greater+level+of+transparency+is+needed.%3C%2Fp%3EJPMorgan+pays+%24153+million+to+settle+mortgage+case%3Cp%3E%26quot%3B%5BI%5Dn+any+case+like+this+that+touches+on+the+transparency+of+financial+markets+whose+gyrations+have+so+depressed+our+economy+and+debilitated+our+lives%2C+there+is+an+overriding+public+interest+in+knowing+the+truth%2C%26quot%3B+Rakoff%2C+a+U+%3Ca+href%3D%22http%3A%2F%2Fcash-advance-nofax.com%22%3Eflexcheck+cash+advance%3C%2Fa%3E%3C%21–+.+–%3E.S.+district+judge+in+Manhattan%2C+wrote+in+his+decision.%3C%2Fp%3E%3Cp%3EThe+SEC%27s+pattern+of+allowing+big+banks+to+reach+settlements+without+admitting+or+denying+wrongdoing%2C+Rakoff+added%2C+has+been+%26quot%3Bhallowed+by+history%2C+but+not+by+reason.%26quot%3B%3C%2Fp%3E%3Cp%3ECitigroup+did+not+have+an+immediate+reaction+to+the+SEC%27s+appeal.+At+the+time+of+Rakoff%27s+ruling%2C+a+spokeswoman+for+the+banking+giant+said+it+respectfully+disagreed+with+the+decision.%3C%2Fp%3E%3Cp%3E%26quot%3BIn+the+event+the+case+is+tried%2C+we+would+present+substantial+factual+and+legal+defenses+to+the+charges%2C%26quot%3B+she+added.%3C%2Fp%3E%3Cp%3EThe+SEC+alleged+that+in+2007%2C+Citi+created+and+sold+a+mortgage-related+collaterialized+debt+obligation%2C+or+CDO%2C+called+Class+V+Funding+III.+%3C%2Fp%3E%3Cp%3EAccording+to+the+SEC+complaint%2C+one+CDO+trader+characterized+the+asset+group+in+internal+communications+as+%26quot%3Ba+collection+of+dogshit%26quot%3B+and+%26quot%3Bpossibly+the+best+short+EVER%21%26quot%3B+%3C%2Fp%3E%3Cp%3ECan+Wall+Street+thrive+again%3F%3C%2Fp%3E%3Cp%3EIn+marketing+materials%2C+however%2C+the+assets+were+described+as+%26quot%3Battractive+investments+rigorously+selected+by+an+independent+investment+adviser%2C%26quot%3B+Rakoff%27s+decision+said.%3C%2Fp%3E%3Cp%3E%3C%2Fp%3E%3Cp%3E+%3C%2Fp%3E%3Cp%3EAfter+marketing+the+CDO%2C+Citi+then+took+a+short+position+–+or+bet+against+–+the+security+as+the+housing+market+deteriorated%2C+bringing+in+a+net+profit+of+%24160+million+for+the+bank.+Meanwhile%2C+investors+lost+more+than+%24700+million.+%3C%2Fp%3E%3Cp%3EThe+SEC+has+settled+a+string+of+similar+complaints+in+recent+months%2C+including+agreements+with+Goldman+Sachs+%28%2C+Fortune+500%29+and+JPMorgan+Chase+%28%2C+Fortune+500%29.+%3C%2Fp%3E%3Cp%3ERakoff%2C+though%2C+has+been+a+thorn+in+the+agency%27s+side+in+recent+years%2C+rejecting+a+proposed+%2433+million+settlement+in+2009+between+the+SEC+and+Bank+of+America+%28%2C+Fortune+500%29+over+allegations+that+BofA+lied+about+bonuses+for+Merrill+Lynch+%26amp%3B+Co.+employees+following+the+firms%27+merger.+%3C%2Fp%3E%3Cp%3EThat+settlement+was+later+revised+upward+to+%24150+million%2C+which+Rakoff+reluctantly+approved%2C+calling+it+%26quot%3Bhalf-baked+justice+at+its+best.%26quot%3B%3C%2Fp%3E%3Cp%3EShares+of+Citi+%28%2C+Fortune+500%29+closed+down+0.5%25+in+trading+Thursday.%26nbsp%3B+%3C%2Fp%3E++%3Cp%3E%3Ca+href%3D%27http%3A%2F%2Fmoney.cnn.com%2F2011%2F12%2F15%2Fnews%2Fcompanies%2Fcitigroup_sec_appeal%2Findex.htm%27+rel%3D%27nofollow%27%3ESource%3C%2Fa%3E%3C%2Fp%3E+

U.S. stock indexes rose in early trading Friday after 26 European nations agreed to consider tying their economies together more closely in hopes of preventing […]

Election officials say president and former Sandinista revolutionary Daniel Ortega is winning big in Nicaragua’s presidential election.
Nicaragua’s Supreme Electoral Council says Ortega has nearly 64 […]

Stocks pushed higher in afternoon trading Wednesday following reports that China will come to the aid of Europe by buying bonds.
Agence France-Presse reported that China […]

A Detroit-area union is supporting a new labor contract with Chrysler Group, giving the agreement a boost after “no” votes at other key locals.
An official […]

Johnson & Johnson’s third-quarter profit fell 6 percent becuase larger overhead and production costs and a one-time charge offset higher foreign sales.
The health care giant […]

Revolutionary fighters struggled to regroup Saturday outside the loyalist stronghold of Bani Walid after being beaten back by fierce resistance from followers of Moammar Gadhafi, […]

The $600 Missoni patio set was available online Wednesday but many of the other 400 items by the Italian luxury knitwear designer were out of […]

Missouri will lift its 4.225 percent state sales tax on qualifying back-to-school purchases in stores and online this Friday through Sunday. Local taxes will also […]