The state of Pennsylvania ordered Citigroup Inc. to pay hundreds of millions of dollars to buy back auction-rate securities from thousands of investors in the state in the wake of the collapse of the market for the securities in early 2008. Tuesday's order also requires Citigroup to pay $2.3 million to the state.

The Pennsylvania Securities Commission estimated more than 1,200 retail investors and 167 institutional investors in the state held auction-rate securities from Citi as of January 2008, before the market collapse. Under the commission's order, Citigroup must offer to repurchase the securities from the retail investors but not the institutional or professional investors.

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