NY’s Attorney General preparing to bring legal action against Citigroup

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WKTV News

Story Created: Aug 3, 2008 at 10:52 AM EDT

Story Updated: Aug 3, 2008 at 10:52 AM EDT

New York’s Attorney General is preparing to bring legal action against Citigroup.

Andrew Cuomo's office is accusing the bank of fraud, as well as destroying documents.

According to Reuters News Service, a five-month investigation revealed the bank falsely assured customers that certain securities were just like cash.

Those securities proved difficult to sell in a weak economy. Now the state wants Citigroup to buy the securities back at cost. A spokesperson from Citigroup declined comment.

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