Regulators Close Citigroup Private Banking in Japan
|
Japanese regulators have ordered Citigroup to close down it private banking interests in the country. The US based bank had broken banking laws. Citigroup is the worlds largest financial services group. Whilst a small part of Citigroups operations in Japan, the move could affect its corporate business. Private banking elsewhere might be affected. The sanction is a serious blow for Citigroup and was unexpectedly severe. "Misleading customers" and failing to prevent money laundering were two of the misdemeanours. The regulator involved was the Financial Services Agency (FSA). One of the violations was to lend money, which was used to manipulate the price of a listed stock. The bank should have had better screening of customers. In August the bank had created a stir by executing a massive trade in the European Government bonds. Essentially they sold billions of dollars worth of bonds in two minutes, driving the price down. An hour later they brought the bonds back at the lower price. An apology has since appeared. Numerous investor lawsuits are pending in the US. Private banking in Japan generated the bulk of the $89m (£50m) net income from asset management for Citigroup in Japan.
|
Related Articles
Similar Areas Selected Books Keywords
|