Created: 15 April 2009
The Arizona Republic (4/15, Harris) reports, “The Arizona Corporation Commission on Tuesday ordered Citigroup Global Markets Inc. to pay a $455,128 fine after regulators say the company provided misleading information on auction-rate securities sales in Arizona.” This marks the “final step in the state’s auction-rate securities case against Citigroup, settled in August.” Citigroup “neither admitted nor denied the commission’s findings.” According to the commission, “the investigation into Citigroup’s role in the marketing of auction-rate securities was part of a larger effort to address problems in connection with such investments.” The Arizona Daily Star (4/14) reported, “The investigation was part of a 12-state inquiry into whether prominent Wall Street firms misled investors when placing them into auction-rate securities.” Under the settlement, “Citigroup agreed to buy back the securities and reimburse investors who sold at a loss.”