Attorney General Andrew Cuomo announced that Citigroup will buy back $7 billion worth of auction-rate securities from almost 40,000 customers. The auction rate market collapsed in February, and investors were left unable to sell them. Cuomo said, "Today’s settlement sends a resounding message to the entire auction rate securities industry: this type of deceptive behavior will not be tolerated." Citibank must buy back the securities by November 5 of this year; the company will also pay a $100 million fine for misleading investors.
Published Aug 7, 2008
Modified Aug 7, 2008
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