In addition to paying $100 million in fines, Citigroup has agreed to buy back more than $7 billion in auction-rate securities to settle with federal and state regulators.
Some 40,000 individual investors will be reimbursed nationwide as will small businesses, and charities as part of the deal. Investors will be reimbursed who sole their securities at a loss after the market collapse in mid-February.
The $100 million in fines breaks down as $50 million each in civil penalties to New York state and North American Securities Administrators Association, the organization that represents securities regulators in the 50 states and the District of Columbia.
