Citigroup: the next instalment
Filed in archive Ethics by leon on April 11, 2006

was not seeking to ban prop trading.That completely contradicts Claim No. 7 in ASIC's Statement of Claim which says it seeks "an injunction restraining Citigroup from engaging in...trading in securities on its own account whilst acting for clients to whom Citigroup owes duties in relation to the price of those securities.''
So are they trying to restrain it or not? Try and work that one out.
I have written about how this is one of ASIC's most ambitious and high-risk cases. My colleague Malcolm Maiden has a piece shedding light on how Citigroup may have sent a signal to the market when it brought its transport analyst Jason Smith over the wall, and how an ASIC victory could make prop trading impossible.
This is going to be one very messy case, and the investment banking world will watch it closely.
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