Defendant Name:
Citigroup Global Markets Inc.
Defendant Type:
Subsidiary of Public Company
Document Reference:
LR-21585
Document Details
Legal Case Name
SEC v. Citigroup Global Markets, Inc.
Document Name
SEC Completes Review of Performance by Citigroup, RBC and Wachovia Under Auction Rate Securities Settlements
Document Date
30-Jun-2010
Document Format
Civil Proceeding
Case Number
08-cv-10753
Federal District Court
New York, Southern District of New York
Allegation Type
Broker Dealer
Document Summary
On June 30, 2010, the SEC published a litigation release regarding this matter. The SEC announced that: "three financial firms that settled the Commission's auction rate securities (ARS) charges against them have satisfied their obligations under their respective settlements and that more than $26 billion has been returned to their ARS customers."
Disgorgement & Penalty Information
Resolutions
Repurchase from customers and use "best efforts" to provide liquidity opportunities to their institutional customers
Related Documents:
Complaint
In the Complaint, the SEC stated: "This is a case in which the Defendant misled tens of thousands of its customers regarding the fundamental nature and increasing risks associated with auction rate securities ('ARS') that Citi underwrote, marketed and sold. Through its financial advisers ('FAs'), sales personnel, and marketing materials, Citi misrepresented to customers that ARS were safe, highly liquid investments comparable to money market instruments. As a result, numerous customers invested in ARS funds they needed to have available on a short-term basis." In particular, the SEC alleged that: "During the fall of 2007, the credit crisis and deteriorating market conditions caused Citi to have to support its auctions to a greater extent. Citi knew the ARS market was deteriorating and Citi's inventory of ARS was significantly increasing. Accordingly, Citi knew the risk of failed auctions had materially increased. Citi knew these material facts but did not disclose to its customers timely, complete, and accurate information about them."
SEC Finalizes Auction Rate Securities Settlements With Citigroup and UBS Providing Nearly $30 Billion in Liquidity to Investors
The SEC stated that: "[It] finalized settlements with
Citigroup Global Markets, Inc. (Citi) and UBS Securities LLC and UBS
Financial Services, Inc. (UBS), that will provide nearly $30 billion to tens of
thousands of customers who invested in auction rate securities before the
market for those securities froze in February."
SEC Finalizes ARS Settlements With Citigroup And UBS, Providing Nearly $30 Billion in Liquidity to Investors
The SEC stated that: "[It] finalized settlements with Citigroup Global Markets, Inc.
(Citi) and UBS Securities LLC and UBS Financial Services, Inc. (UBS) that
will provide nearly $30 billion to tens of thousands of customers who
invested in auction rate securities before the market for those securities
froze in February."
Judgment as to Defendant Citigroup Global Markets Inc.
On December 22, 2008, Federal District Judge Deborah A. Batts entered final judgment against Citigroup Global Markets Inc. pursuant to Citigroup Global Markets Inc's consent.
