Citigroup Agrees to $7b Settlement With Cuomo
By Associated Press | August 7, 2008
http://www.nysun.com/business/citigroup-agrees-to-7b-settlement-with-cuomo/83404/
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ShareALBANY — Attorney General Cuomo says he's reached a settlement worth more than $7 billion with Citigroup that requires the company to buy back auction-rate securities from about 40,000 customers nationwide.
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Attorney General Cuomo speaks at a press conference in New York City in May 2008.
RELATED: The Statement from the Office of the Attorney General.
General Cuomo had threatened to charge the company with fraudulent sales of auction-rate securities and with the destruction of key documents.
The settlement announced today requires Citigroup to buy back securities from retail customers, charities and small to mid-sized businesses by November 5.
Citigroup will also have to pay New York state a $50 million civil penalty, and a separate $50 million civil penalty to the North American Securities Administrators Association.
Citigroup did not immediately return a call for comment.
