Christopher Warren-Smith , litigation partner of Barlow Lyde & Gilbert , warns the FSA ruling on a controversial eurobonds trade by Citigroup means financial institutions have to think carefully about strategy and execution.
The worrying aspects of the FSA's action against Citigroup go beyond just markets and trading. There are potential implications for all regulated firms. Citicorp carried out two very large bond trades in quick succession in eurozone government bond contracts that made it a short-term profit of $18.2 million. The trades prompted a market furore and angered European Governments. Citicorp itself was quick to spot the potential reputational damage and described the trades as "knuckleheaded". The FSA (and other regulators) investigated the trades. It found there was no market manipulatio...
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