NY attorney general settles for $7B with Citigroup

ALBANY-NEW YORK: New York Attorney General Andrew Cuomo says he has 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 in the US.

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 November 5.

Citigroup, the largest US banking company by assets, 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.