Citigroup To Buy Back $7B in Securities, Pay $100M in Fines
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
WASHINGTON — Citigroup Inc. will buy back more than $7 billion in auction-rate securities and pay $100 million in fines as part of settlements with federal and state regulators, who said the bank marketed the investments as safe despite liquidity risks.
Citigroup will buy back the securities from tens of thousands of investors nationwide under separate accords announced yesterday with the Securities and Exchange Commission, Attorney General Cuomo, and other state regulators. The buybacks from nearly 40,000 individual investors, small businesses, and charities are not expected to cause significant losses for Citigroup; they must be completed by November.
A login link has been sent to
Enter your email to read this article.
Get 2 free articles when you subscribe.
