Judge Jed S. Rakoff has rejected the $285 million proposed settlement between Citigroup and the Securities and Exchange Commission. Rakoff's move takes aim at the regulator's practice of allowing firms to settle claims without admitting fault. "We respectfully disagree with the court's ruling," a Citi representative said. "We believe the proposed settlement is a fair and reasonable resolution to the SEC's allegation of negligence, which relates to a five-year-old transaction. We also believe the settlement fully complies with long-established legal standards."