Citigroup Inc, accused the bank of fraudulently selling auction-rate securities and destroying documents that had been subpoenaed by the state.

The office New York Attorney General Andrew Cuomo said on Friday it planned to bring legal action against Citigroup Inc, accusing the bank of fraudulently selling auction-rate securities and destroying documents that had been subpoenaed by the state.In a letter of intent obtained by Reuters, the state said its five-month probe into auction-rate markets revealed the bank falsely assured customers that these securities were as liquid as cash. The securities have been difficult to sell since credit markets tightened earlier this year.The state wants Citigroup to buy back these securities at par value.A Citigroup spokeswoman declined comment.