Citigroup's 'Dr Evil' Eurobond trading play last August has been in the news almost ever since. Various European regulatory agencies have been all over the case like a rash. And now the German government is pushing for the creation of a Europeanwide financial markets watchdog.

The Germans are now calling for the creation of 'a European system of financial supervision' for banks and insurers whose activities cross borders. Many fear that this could be the first step in what would ultimately become a European equivalent to US regulator The Securities and Exchange Commission (SEC).

And whilst on the subject of 'Dr Evil', the Greek government has said that it couldn't care less about Citigroup's trading exploits last year. They didn't do their own bond markets any harm and the Greeks have said that they have no reason to stop using Citigroup for underwriting deals.

UK's securities regulator, The Financial Services Authority (FSA), is getting it in the neck once again. Think-tank the Centre for Policy Studies has warned that 'heavy-handed' regulation could endanger the City's leading position in the financial markets. The FSA is accused of creating a 'culture of prescriptive and increasingly-complex regulation'.

Finally, US lawyers were given a shot across the bows last week by SEC chief William Donaldson. Complaining that some lawyers had contributed to the recent mutual funds scandal, Donaldson warned that the SEC was stepping up its scrutiny of the profession.

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