The Financial Services Authority, the UK regulator, is poised to fine Citigroup for control failures relating to its controversial €16bn ($19.8bn) European government bond trades last August. It is believed the US bank will escape charges of market manipulation.

The FSA has already sounded out Citigroup about a fine of between €10m and €50m in order to signal the strength of its concern about the bank's control failures, The Wall Street Journal reported.