2008-08-07 — breitbart.com
Citigroup Inc. will buy back more than $7 billion in auction-rate securities and pay $100 million in fines as part of settlements with federal and state regulators, who said the bank marketed the investments as safe despite liquidity risks.
Citigroup will buy back the securities from tens of thousands of investors nationwide under separate accords announced Thursday with the Securities and Exchange Commission, New York Attorney General Andrew Cuomo and other state regulators. The buybacks must be completed by November.
Fire up those tin cups, boyz.
UBS, Morgan Stanley and Merrill Lynch also had similar suits and in some cases already settlements.
kindandgentlejd at 15:21 2008-08-07 said:Let the litigation begin! There is not enough money out there for the investor and regulator litigation that will be associated with MBS tied to Payment Option ARMs. This just the tip of this iceberg... you have the lenders getting hit on the front end by consumers... then getting hit on the back end by investors... you squeeze too hard and before you know it, no one is left to squeeze. Permalink
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