Wachovia, Citi To Buy Back $4.7B In Calif. ARS Deal

Law360, New York (March 31, 2009, 12:00 AM EDT) -- Two Wachovia Corp. units and one Citigroup Inc. unit are set to buy back $4.7 billion in auction rate securities from California investors to lay to rest allegations by the state's financing authority that they touted the investments as safe even though the products faced liquidity risks.

Under the terms of the settlement with the California Department of Corporations, Wachovia Securities LLC and Wachovia Capital Markets LLC will repurchase $1.5 billion in securities, while Citigroup Global Markets Inc. will repurchase offers of $3.2 billion in auction...
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