NEW YORK (TheStreet) -- Citigroup (C) was handed a court victory today when a federal appeals court overturned a judge's ruling rejecting a federal settlement deal between the bank and the SEC three years ago.
The three-judge panel of the federal appeals court in New York ruled that Judge Jed S. Rakoff overstepped his boundaries and "abused its discretion by applying an incorrect legal standard in its review" when he threw out the $285 million settlement.
The original settlement came after the SEC accused Citgroup of misleading investors about a $1 billion mortgage bond investment that netted the bank $160 million while costing the investors millions.
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Citigroup shares are down -0.4% to $47.97 in trading today.
TheStreet Ratings team rates CITIGROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CITIGROUP INC (C) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, increase in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."