New York attorney general settles for $7B with Citigroup

Tools

New York attorney general settles for $7B with Citigroup

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.

---

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

 

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

Add a comment

Name:

Comment: 500 Characters Left

Comments are moderated and will not appear on this story until after they have been reviewed and deemed appropriate for posting.

NBC-WKTV News Channel 2 and its affiliated companies are not responsible for the content of comments posted or for anything arising out of use of the above comments or other interaction among the users. We reserve the right to screen, refuse to post, remove or edit user-generated content at any time and for any or no reason in our absolute and sole discretion without prior notice, although we have no duty to do so or to monitor any Public Forum.

Weather On Demand

Weather Radar
Icon
Current Temp 66 °F
Overcast
Wind : From the East at 3 MPH
Humidity : 81 %
Pressure : 30.01" (1015.8 mb) in.
Wind Chill : NA °F
More Weather

On Demand

AP Video

Stock Quotes

Permanent Client link holder

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.

What's On

8.00
america's toughest jobs
9.00
dateline nbc

Viewer Poll

If the presidential election were to be held tomorrow, which team would get your vote?

  • Obama/Biden
  • McCain/ Palin
  • Undecided
  • Neither