Grassley praises judge in Citigroup case

Sen. Chuck Grassley (R-Iowa) has offered praise for a federal judge's ruling that blocks the Securities and Exchange Commission (SEC) from settling a fraud investigation into Citigroup.

Grassley, the ranking member on the Senate Judiciary Committee, has led congressional efforts to beef up SEC oversight of Wall Street.

“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,” he said in a statement emailed from his office.

Judge Jed Rakoff ruled Monday that the SEC's Citigroup case must go to trial next summer. The SEC had attempted to forge a $285 million settlement with Citigroup in which the firm did not admit any guilt. 

The SEC said Monday that Rakoff's ruling could hurt its investigation efforts by increasing costs.

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