Brussels, 04/02/2005 (Agence Europe) - Jean-Claude Trichet reacted on Thursday to inquiries carried out by several market regulation authorities on the operations of the financial establishment Citigroup on the European bond market. Speaking to the press after the Council of Governors, the President of the European Central Bank called for a “detailed and in-depth” examination of the facts laid at the door of the American group. “It is very much in our interests to ensure that the markets function correctly and honestly”, he said about this controversial affairs and the capacity of those involved to influence prices.
Last August, Citigroup sold euro zone bonds for over 12 billion euros, and then almost immediately bought back 4 billion euros' worth for a much lower price, making them a profit of over fifteen million euros. According to Friday's Financial Times, the Italian bond market regulation authorities is soon to conclude its inquiries into the operation, which is also being looked into by the British, Spanish and Portuguese authorities. The German authority has already amassed sufficient tangible proof to start criminal proceedings. Citigroup has apologised for its “inappropriate” behaviour, but still feels that it has not broken any rules.