FOR IMMEDIATE RELEASE
Thursday, April 09, 2009
Contact: Laura Egerdal, (573) 526-0949
Contact: Ryan Hobart, (573) 526-4734

Carnahan Finalizes Auction Rate Securities Settlement with Citigroup, Disappointed in Stifel’s Failure to Follow Suit

Jefferson City, MO - Secretary of State Robin Carnahan announced today a final settlement by consent order that covers Citigroup’s relief for Missourians harmed by the 2008 auction rate securities meltdown and requires Citigroup to pay $400,000 to the state.

Under the order signed today, Citigroup Global Markets Inc., finalized its November repurchase of auction rate securities held by its Missouri individual and small business clients. The order also provides other important relief for Missouri investors who held over $130 million in auction rate securities when that market failed.  Citigroup agreed to settlement terms with state regulators in August 2008 and this order finalizes that agreement. 

“I applaud Citigroup for doing right by its clients and giving them immediate relief,” said Carnahan

Last month, Carnahan filed a civil action against Stifel Nicolaus for its failure to buy back its clients’ auction rate securities. Stifel has announced a drawn-out buyback plan for its auction rate securities customers.

Carnahan said, “It is disappointing that Stifel clients have to wait over three years for relief that almost 20 other firms have already agreed to provide to their clients immediately.”

Carnahan will continue to fight for investor relief and to hold firms accountable in all auction rate securities cases that have not been resolved.  

-- 30 --

To find out more about Missouri’s Secretary of State’s office, visit www.sos.mo.gov

###