Citigroup To Buy Back $19.5B In ARS, Pay $100M Fine

Law360, New York (August 7, 2008, 12:00 AM EDT) -- In a landmark settlement announced Thursday, Citigroup Inc. has agreed to buy back $19.5 billion in auction rate securities and pay a $100 million fine to settle allegations that it fraudulently misrepresented the liquidity of the investments to customers.

The agreement makes Citigroup the first Wall Street firm to settle with a group of federal and state authorities that includes the office of New York Attorney General Andrew Cuomo, the U.S. Securities and Exchange Commission and other state securities regulators, following investigations into the collapse of...
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