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| Citigroup's bond trades
are under scrutiny (BBC) |
France and Germany's financial market watchdogs
have begun to look into
Citigroup bond trades already under scrutiny in the UK.
Both Germany's BaFin and France's AMF said they were gathering
information on the trades, but had not yet launched formal investigations.
On Wednesday, the UK's Financial Services Authority (FSA) announced a
formal probe into the matter.
It centres on a large-scale sale of government bonds by Citigroup
traders.
The sale, carried out on 2 August, is reported to have pushed down the
price of the bonds, allowing Citigroup to buy them back at a profit soon
afterwards.
City sources told reporters that Citigroup,
the world's biggest financial services company, may have made profits of up
to 30 million euros on the deal.
The transaction did not breach any financial market regulations.
But Citigroup's rivals, some of whom are thought to have lost money as
a result, have suggested it violated a "gentleman's agreement" to keep
markets stable.
Citigroup has said it will cooperate fully with the FSA investigation.
The company declined to comment on the French and German regulators'
inquiries.
(Agencies) | 
Updated: 2004-08-20 11:27