The Guardian (UK): Citigroup braced for record fine: “It might even top the record-breaking £17m slapped on oil company Shell last year.”

Jill Treanor and David Gow

Saturday June 18, 2005

Citigroup is braced for a hefty fine by the Financial Services Authority despite being cleared by Germany's Eurex exchange following an investigation into a £7bn European bond trade last year.

The City regulator has been investigating the bond trade since last August, when Citigroup made a profit of £8m in two minutes.

The FSA is thought to be in the final stages of its investigation and is expected to levy a fine that would wipe out the profit made from the trade. It might even top the record-breaking £17m slapped on oil company Shell last year.

In contrast, the Eurex yesterday told Citigroup it had not broken any of its rules when it executed the trade. Citigroup was fined €5,000 (£3,300) for failing to register one of its traders on a "timely basis".

"Citigroup has cooperated fully with the Eurex sanctions committee's investigation and is pleased with [the] result," the US bank said.

http://www.guardian.co.uk/business/story/0,,1509138,00.html

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