SEC-Citigroup settlement rejected, judge is right to seek information

Sen. Chuck Grassley of Iowa today made the following comment on a judge's rejection of the Securities and Exchange Commission's settlement with Citigroup.  Grassley works to gauge the agency's performance on behalf of the investing public.

"Judge Rakoff is right to ask for information.  The SEC needs to provide a clear rationale for the enforcement penalties in this case and in others.  Otherwise, the public is in the dark about whether the settlements are adequate and the court's role is reduced to a rubber stamp.   A settle and slap-on-the-wrist approach has not and will not deter the defrauding of investors."