Citigroup receives subpoena from SEC, regulators

NEW YORK: Citigroup Inc says the Securities and Exchange Commission and other regulators have subpoenaed information from the bank about the sale of its auction rate securities.

Citi says in an SEC filing that officials are investigating whether federal securities laws were violated during the sales of the securities.

Auction-rate securities have their interest rates set at periodic auctions, depending on the submitted bids. The investments were once considered safe, but the market collapsed in February amid turmoil in the credit markets.

Citi said other industry participants have also received subpoenas.

Citigroup stock fell 47 cents, or 2.5 percent, to $18.22 in Friday morning trading.