The news agency reports that, according to its sources, the bank is working with UK and U.S authorities with a view to a settlement early in the fourth quarter.
One London-based Lawyer connected to LIBOR cases told Reuters: 'They are state-owned (so) they are under more pressure than most to deal with this'.
In the meantime, Bloomberg reports that Citigroup CEO Vikram Pandit said regulators shouldn’t dictate what banks can sell to clients because such controls risk undermining financial stability and have no clear economic benefit.
Speaking on the Australian Broadcasting Corp., Pandit said he supports the 'concept' of the Volcker rule - that a bank’s capital should be used for clients. Still, he said dividing Citigroup in the manner suggested by Weill would be an 'artificial separation' and the New York-based bank must continue to lend as well as tap capital markets for customers.