Colorado securities regulators have reached a settlement with Citigroup Global Market Inc. to provide thousands of its clients with access to billions of dollars in frozen funds.
Under the deal, the securities arm of the troubled bank also will pay the state $1.2 million.
Citigroup allegedly misled clients by giving false assurances that auction-rate securities, or ARS, were as safe as cash. When the securities froze in February 2008, investors across the country lodged complaints saying they could not withdraw money from their accounts.
The settlement was hailed by Colorado Securities Commissioner Fred Joseph as a victory for investors.
“Securing a liquidity solution for investors has been the primary objective of our investigations,” he said.
