Professor Hillman Comments for Reuters on Federal Judge's Rejection of Citigroup Settlement
Professor Robert Hillman commented for Reuters on U.S. District Judge Jed Rakoff's order blocking a U.S. Securities and Exchange Commission's settlement with Citigroup over charges the bank defrauded investors. The news agency's report was published by numerous media outlets, including the Wall Street Journal and Chicago Tribune.
Courts usually have approved similar pacts between government agencies and corporate defendants with few questions, but in light of growing public frustration with Wall Street and its regulators, Judge Rakoff's rejection of the Citigroup settlement may prove influential, Professor Hillman said. "It's likely that some other federal judges will be influenced," he said. "Maybe they'll act in a more restrained way and maybe there won't be some of Rakoff's rhetorical flourishes."
Robert Hillman is a Professor of Law and holds the Fair Business Practices and Investor Advocacy Chair at UC Davis School of Law. He is a scholar in the fields of international transactions, securities regulation, and corporate and partnership law.