FSA sends confusing signal with £14m Citigroup fine

Citigroup will have to pay £13.9m, the second largest fine ever levied by the UK's Financial Services Authority, for its controversial Eu12.9bn euro zone government bond trade last August.

But though the FSA took away all the bank's £9.96m profits from the trade, plus a £4m penalty, it decided not to class the trade as market abuse.

The regulator criticised the way Citigroup had conducted the trade, rather than the trade itself.

The bank was found to have broken Principles 2 and 3 of the FSA's code: it was guilty of "failure to act with due skill, care and diligence" and "failures in systems and controls".

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