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

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

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