Citigroup To Face Another Investigation Into Bond Scandal, Says Source

Regulators in the German state of Hesse may launch disciplinary action at the Eurex derivatives exchange against Citigroup for controversial government bond trades, a source close to the matter told Reuters. Citigroup is already facing separate investigations by German public prosecutors and Britain’s Financial Services Authority for a multi-billion-euro trade in euro-zone government bonds last August. Reuters further reports that Hesse’s financial supervisor was leaning towards convening the disciplinary committee of the Eurex exchange, which Citigroup traders used to hedge the bond trades carried out on the MTS trading platform. “It looks like it is heading toward a meeting of the sanctions committee,” the source told Reuters.