Michigan details settlement with Citigroup, Wachovia

Michigan regulators say brokerage firms Citigroup Inc. and Wachovia Corp. have paid $2.37 million to the state after an investigation into the sale of auction rate securities. Ninety percent of the fines will go to Michigan's general fund. Michigan regulators say brokerage firms Citigroup Inc. and Wachovia Corp. have paid $2.37 million to the state after an investigation into the sale of auction rate securities.National settlements were reached last year. Michigan's Office of Financial and Insurance Regulation detailed the state's portion Wednesday. Citigroup and Wachovia were accused of misleading investors on the risks of auction rate securities. In auction rate securities markets, investors trade what resembles corporate debt, but interest rates are reset at frequent auctions.