It took regulators one long year to work out what exactly Citigroup did wrong in August 2004 on the EuroMTS trading platform. In the interim, Citi has apologized repeatedly for its actions, perhaps because the firm itself has been the biggest victim. Having lost a fair chunk of fees underwriting business – apart from when the Greek debt office broke step in March on its €5billion 32-year deal – the firm has been notably absent in benchmark euro sovereign new issues since the misguided trade. Although some rival bankers suspect Citigroup has still been involved indirectly in the primary European government bond marks by carrying out swaps for new issues, its last euro trade of note for the Republic of Italy – the sovereign said to have taken particular issue with the rogue trade – came way back in February 2004. While Citi continues to enjoy success in other sectors of the international bond markets, the firm must be hoping that it will return to favour soon.

UK boutique warehouses and bulks up fund managers' troublesome unwanted shares, offering a return within three years

With a long history in the region, the most extensive network of any bank and a full suite of financial products, Citigroup is the biggest force in Asian banking. Yet it is still facing challenges. Chris Leahy spoke to Robert Morse, chief executive officer, corporate & investment banking, Citigroup Asia Pacific, about the bank's performance in Asia

Fund management:

The US firm is committed to breaking into the European debt markets – again

The US firm's business mix is making it more difficult to bring success in the primary markets

Ameritrade stays independent and buys TD Waterhouse instead

The tool will track the euro against major trading currencies and provide an important non-central bank benchmark

What does it take for banks and investment banks to excel? Obviously they need customers, products, capital, technology, sound strategy, good people and leadership. That's tough enough to assemble, as is managing the balance between customer business and own-account trading. But the characteristic that bankers themselves talk about most as the one that distinguishes winning firms from the rest is even tougher to define and measure. It is culture.

GREs get a pick-up from rating change Government-related entities (GREs) got a substantial lift from Moody's Investors Service when the credit rating agency

Cash-rich investors are looking to put their money to work

Brokers are looking to counterbalance the effects of exchange consolidation

Governments swap to raise creditworthiness

In another example of Hutchison Whampoa raising cash to continue the long-term funding of its loss-making 3G business, the conglomerate announced in June the sale of stakes in Hong Kong's port operations to Singapore arch-rival PSA International. The group, led by Hong Kong's richest man, Li Ka-shing, announced the sale of a 20% interest in cash cow Hutchison International Terminals (HIT) and a 10% stake in Cosco-HIT, a joint venture with China Ocean Shipping (Group) Co.

Emerging-market countries will enter new territory next year. For the first time since the asset class was established in the late 1980s, these nations will become net creditors in the global economy, according to data from Fitch Ratings.

Santander's retail banking specialists' biggest challenge to date will be to turn around the fortunes of Abbey. Can the Spanish bank's model be successfully applied to the highly competitive UK market?

As nominal returns have fallen, investing in hedge funds has become more difficult. Recent high-profile failures in the UK and Asia illustrate that more than ever, it's important to pick the right strategy and the right manager

"In 1994 banks held 70% of all loans. That's now dropped to 29%. Institutional investors now hold 64% of loans. That's not syndicated lending, it's capital markets. They need to change the name."

"Alan Greenspan is positively giddy about the beneficial effects of credit derivatives," said Frank Partnoy at the Euromoney Global Borrowers Forum in London in June.

Germany's deal shows how corporate techniques are firming up government balance sheets

People moves:

Whole loan sales will offer a growing funding alternative for mortgage lenders

Fighting corruption, the scourge of the Philippines, was a major platform of President Gloria Macapagal Arroyo's election campaign in 2004. Elected, one would expect her to be proud of the zeal with which some in her administration are tackling the issue. It seems some of her colleagues were not so certain, however, and chose to take matters into their own hands.

The bank is set to snatch Goldman's crown for the first half of 2005

The proposed removal of a cap on pension funds' foreign holdings could change the shape of Canadian fund management

Singapore: CAO executives charged

The masters of retail banking | Getting back to the Abbey habit | Awards for excellence - Best bank

Bank of America announced in June its intention of investing $3 billion for a 9% stake in China Construction Bank, China's second-biggest state lender, as part of a strategic move into the country. In a deal that took the market by surprise, Bank of America stated that it had entered into agreements with CCB to provide strategic assistance in relation to, inter alia, corporate governance, risk management, credit cards, consumer banking and treasury services. Bank of America is presumably salivating over the prospect of CCB's 136 million retail accounts and 14,500 branches.

Investors keen on domestic market exposure are to be catered for by a new index range

Relations between president and prime minister deteriorate