CHICAGO — Citigroup Global Markets Inc. and divisions of Wachovia Bank have agreed to buy back up to $876 million of auction-rate securities held by Michigan investors and will pay the state a $2.4 million administrative fine, state regulators announced this week.

The settlement with Citigroup and Wachovia Capital Markets LLC and Wachovia Securities LLC is part of a multi-state investigation into broker-dealers’ ARS sales practices stemming from investor losses since the market collapsed last year.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.