Citi To Redeem Auction Rate Securities

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Within 90 days Citigroup will redeem auction rate securities purchased by retail customers, New York Attorney General Andrew Cuomo announced a few minutes ago. What's more, Citi will pay damages to any retail customers who sold the securities at a discount while they were frozen up. Citi accounted for around 20 percent of all auction rate securities sold.
The agreement includes redemptions of auction rate securities purchased by individual investors and charities. Investment funds and corporate purchasers of the securities will not necessarily have their auction rate securities redeemed.
The total amount of securities to be redeemed may be as high as $20 billion, according to some reports. Other reports suggest a figure closer to $8 billion.

Update:
SEC announces pretty much the same thing. Other banks now scrambling to keep up with this precedent set by Citi.

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