So, after months of “pressure” from the “regulators,” Citigroup and Merrill Lynch agreed to compensate thousands of investors who are stuck in the frozen Auction-Rate Securities market.
Citigroup agreed to buy back $7 billion worth of ARS from retail investors in the next three months, while Merrill agreed to buy back $10 billion worth at the start of next year.
UBS is still in discussions with the regulators about their own similar deal.