ASIC investigating Citigroup unconscionable conduct

The headlines are fresh and details scant, but it appears the Australian Securities and Investment Commission is investigating Citigroup over allegations of proprietary insider trading. It seems Citigroup was acting for Toll Holdings Ltd., which has been making a hostile run on Patrick Corp., and that there was some suspect trading by Citigroup in Patrick "the last business day prior to Taoll making an announcement of the bid to the market", quoting off a Dow Jones Newswires report.

Citigroup got a mention in the Stew a few days back in relation to some coincidental market trading (and I have no idea if Citigroup was involved in it, so am not doing anything other than drawing attention to the coincidenc) before it announced in New York that it was turning from bearish to bullish on commodities. See On yer bikes, then.

Guambat has also mentioned that proprietary trading profits are becoming the largest, and most risky, part of the profits of some of the large investment banks: Risque business.

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