Weekly Global News Wrap: Citi to exit distressed-debt trading business; Korea seeks to fine HSBC, BNP Paribas

And Germany seizes $790m from the bank account of a Russian financial institution.

From Bloomberg:
Citi is exiting the distressed-debt trading business.

The move, described by people briefed on the matter, will remove one of the key players in distressed-debt markets, and follows a recent decision by the New York-based bank to get out of municipal bond trading and underwriting.

From Bloomberg:
South Korea’s Financial Supervisory Service has recommending imposing at least a $7.7m (KRW10b) fine each on HSBC and BNP Paribas for naked short selling, says two people familiar with the matter.

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The nation’s Financial Supervisory Service made the recommendation to the Securities and Futures Commission under regulator Financial Services Commission, the sources said.

From Reuters:
Prosecutors in Germany said on Wednesday they would move to confiscate more than $790m (€720m) from the Frankfurt bank account of a Russian financial institution.

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German authorities have previously moved to freeze Russian assets in response to Moscow's full-scale invasion of Ukraine in 2022, but have stopped short of attempts to confiscate money.