Citi to pay $7B to investors

August 07, 2008

Citigroup agreed to buy back more than $7 billion of illiquid auction-rate securities in a deal worked out with regulators, which could set settlement standards for other Wall Street firms. On Wall Street, the Dow tumbled 224 points to 11,431. The S&P 500 dropped 23 points to 1,266. The Nasdaq fell 22 points to 2,355. Crude oil prices rallied $1.44 to settle at $120.02 a barrel. Conway Gittens reports from New York.