145;Citigroup manager to face action146;

The possible action is the latest black eye for Citigroup as it attempts to recover from several recent regulatory problems including a run-in with Tokyo regulators who said it misled clients in a series of private bond sales. The company8217;s European operation also had to apologize for a huge government debt trade that roiled markets.

In what is sometimes referred to as a 8216;8216;Wells Notice8217;8217; and was described in a Citigroup filing with the SEC, the latest possible action relates to the 8216;8216;creation and operation of an internal transfer agent unit to serve primarily the Smith Barney family of funds.8217;8217;

Citigroup said last November that federal prosecutors were investigating its mutual fund unit over its relationship with a transfer agent services provider and the company expressed 8216;8216;regret8217;8217; over 8216;8216;errors8217;8217; in the relationship. 8212;Reuters