Why is Citigroup and Merril Lynch buying back securities from retail customers and retail investors?

Question

To level out the markets?

Answer 1

what's the difference between a retail customer and a retail investor?  just curious.

I know that the two are supposed to be issuing new securities to raise needed capital.

I'm not really following the two companies, but if they're buying back stock, they might think it's undervalued right now.   Or they could be attempting to boost teh stock price.    

Answer 2

Because they ripped off investors.  Citigroup is paying for the sins of that huckster Sandy Weill.  He turned Citigroup into a glorified telemarketer company. And Merrill has always been a sleazy company.  They dont control their brokers.

Answer 3

Citi represented securities as cash-liquid, but they were not.  They're reimbursing 40,000 people nationwide based on direction from the NY Attorney General.

Merrill cashed out (put a value on) securities that they have to get off the books, have to have a value on to move forward, and were fortunate to find a buyer for at 23 cents on the dollar.  It remains to be seen whether this is "too discounted of a sale" by CEO Thane, or whether it is a smart move to get ahead of others who'll eventually be forced to do the same thing, but at an even less favorable rate once this all snowballs.  Either way, a value must be placed on these securities for the markets to move forward and restore some liquidity.