Judge weighs fairness of Citigroup’s $590 mln investor pact

A federal judge grilled lawyers for Citigroup Inc and shareholders on Monday over a proposed $590 million settlement of an investor lawsuit over its exposure to toxic mortgage assets, asking if the accord was fair given none of the bank executives named as defendants would contribute money to it.
U.S. District Judge Sidney Stein in Manhattan said that Citigroup’s current shareholders have been left to pay for the settlement under the current terms of the agreement. He said he was concerned about the impact on future bank conduct, citing the lack of any planned payments by individual defendants including former Chief Executive Charles Prince. “Should the plaintiffs not also be concerned with deterrence as an issue in the settlement?” Stein asked.
More on Reuters here.