Citi Says Regulators Probing Trading of Sovereign Securities (1)

Citigroup Inc. said government and regulatory agencies are investigating the bank’s trading of sovereign and other government-related securities.

The company is cooperating with the probes, according to a regulatory filing Thursday, which didn’t disclose which agencies are handling the matter.

Separately in the filing, Citigroup said it was forced by sanctions to record a writedown of about $130 million on the value of Russian sovereign bonds. While the move crimped results, revenue from trading rates and currencies products still soared 66% in the second quarter.

Citigroup has spent months trying to whittle away its exposure to Russia, and the firm ...