A US judge yesterday rejected the Securities and Exchange Commission’s $285 million (€214 million) settlement with Citigroup to resolve allegations that the bank misled buyers of a mortgage-related security, and signalled he would no longer approve such deals without admissions of wrongdoing.

In rejecting the settlement, Judge Jed Rakoff wrote he could not approve it “because the court has not been provided with any proven or admitted facts upon which to exercise even a modest degree of independent judgment”. – (Copyright The Financial Times Limited 2011)