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Citibank Australia Unit Charged With Insider Trading
Citigroup may have the distinction of being the first investment bank in Australia to be charged with insider trading.
A Citigroup spokeswoman, denying all charges, said in a MarketWatch interview that ASIC lacks "any basis of a claim and that this is an attempt to regulate the proprietary trading desks, which are a feature of all major investment banks."
Regardless of the outcome the action, observers say the damage has been done. "It doesn't matter even if they get off, it is a perception," a senior institutional trader told MarketWatch. "Rivals will be sharpening their knives as we speak."