We've seen a lot of activity on the auction rate security front recently. We may start seeing some settlements. The New York Times reports that Citigroup [0] is nearing a deal with federal and state authorities that might result in the bank buying back about $7 billion in auction rates securities from retail investors. It's unclear if securities will be bought back from institutions and corporate investors. Citigroup will also pay a fine--$100 million to New York and $50 million each to about 12 states. The SEC may ultimately levy another fine. This will have implications for other investigations and may set a precedent regarding other banks, notably Merrill Lynch, which has been charged by Mass. Ultimately, we'll also likely see a host of private suit settlements that will certainly add to the costs of the ARS mess. 

For more:
- here's the New York Times article [1]