Citigroup Ordered To Pay $2.3M Over ARS

Law360, New York (July 14, 2009, 12:00 AM EDT) -- Citigroup Global Markets Inc. has been ordered by Pennsylvania's securities regulator to pay a $2.31 million fine and buy back hundreds of millions of dollars in illiquid auction rate securities from more than 1,000 retail investors.

The Pennsylvania Securities Commission announced the final order against Citigroup on Tuesday, saying evidence uncovered in a multistate investigation of the failed ARS market showed the New York-based bank had engaged in unethical or dishonest business practices and failed to supervise its agents in the sale of the securities....
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