New York attorney general settles for $7B with Citigroup

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New York attorney general settles for $7B with Citigroup

Story Created: Aug 7, 2008 at 11:23 AM EDT

Story Updated: Aug 7, 2008 at 11:23 AM EDT

ALBANY (AP) - New York Attorney General Andrew Cuomo says he's reached a settlement worth more than $7 billion with Citigroup that requires the company to buy back auction-rate securities from about 40,000 customers nationwide.

Cuomo had threatened to charge the company with fraudulent sales of auction-rate securities and with the destruction of key documents.

The settlement announced Thursday requires Citigroup to buy back securities from retail customers, charities and small to mid-sized businesses by Nov. 5.

Citigroup will also have to pay New York state a $50 million civil penalty, and a separate $50 million civil penalty to the North American Securities Administrators Association.

Citigroup did not immediately return a call for comment.

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On the Net: http://www.oag.state.ny.us/

 

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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