Citigroup to pay $200,000 for unit's misdeeds

Citigroup Inc. has agreed to pay $200,000 to settle charges with the Securities and Exchange Commission regarding one of its brokerage units that manipulated auctions involving municipal and corporate bonds. The alleged violations took place at Legg Mason Wood Walker Inc. from January 2003 through June 2004, according to Reuters. Citigroup took over Leg Mason's brokerage business in a trade for its on asset management business in December 2005. Legg Mason failed to properly disclose that it made bids for its own accounts to prevent auctions that it arranged from failing, according to the SEC. Legg Mason is based in Baltimore and Citigroup is based in New York.