Citigroup May Buy Back $5B In ARS Debt

Law360, New York (August 6, 2008, 12:00 AM EDT) -- Citigroup Inc. may reportedly buy back more than $5 billion of illiquid auction rate securities and pay a fine of up to $100 million to settle allegations that it fraudulently misrepresented the safety of the investments to its customers.

The investment bank has been in talks with representatives from the office of New York Attorney General Andrew Cuomo, the U.S. Securities and Exchange Commission and other state securities regulators, the Wall Street Journal reported on Wednesday, citing sources familiar with the matter.

Mike Hanretta, a Citigroup...
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