Citi must buy back its auction rate securities!

According to Yahoo/Briefing.com:

Citigroup (C 18.91, -0.79) and the NY Attorney General have reached a multi-billion dollar agreement over allegations that Citi misled investors. The NY Attorney General said that Citigroup marketed auction rate securities as safe and cash-like investments, when in fact they had increasing liquidity risk.

Citi agreed to buy back all illiquid auction rate securities from Citi retail customers, charities and small to mid-sized businesses. The securities are worth more than $7 billion. Citi must also reimburse all retail investors who sold their auction rate securities at a discount.

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