Citi to Yield Big Bucks in Auction-Rate Securities Talks?
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Citigroup may soon eat $8 billion worth of failed auction-rate securities it sold to clients, and get slapped by the SEC with a $100 million fine, according to a report from Bloomberg that cites people familiar with the case.
Citigroup is apparently in talks with the SEC, the New York Attorney General Andrew Cuomo—who, according to the WSJ Online, threatened to sue the firm on Friday if a settlement wasn’t reached—and a group of states led by Texas, says the report.
The direction and result of the talks could influence the outcome of similar suits filed against UBS by New York’s Cuomo and Massachusetts’ Secretary of the Commonwealth William Galvin. According to the Bloomberg story, UBS was in settlement talks today with the two states regulators.
