France raps Citigroup for bad deal | News | Al Jazeera

France raps Citigroup for bad deal

France's treasury has rebuked and penalised Citigroup Inc, saying the bank's controversial $16 billion bond trade in August tarnished European markets.

    The billion dollar transaction impacted Citigroup's prospects

    "Citigroup created havoc in European government bond markets," said Bertrand de Mazieres, the chief executive of the French Treasury on Monday.

    "We told Citigroup that they had tarnished the image of European government bond markets and that this was regrettable."

    The comments are the first public show of displeasure from a European treasury at Citigroup's actions, and the first concrete sign that the matter has impacted the bank's business prospects.

    The trade prompted the French Treasury to lower Citigroup's position in its league table of primary debt dealers.

    "Citigroup isn't at the level of the primary dealers ranking it should have been due to the August trading," Treasury Deputy Chief Executive Benoit Coeure said.

    On-going investigation

    Several European regulators are investigating Citigroup's 2 August rapid-fire sale of $16 billion of bonds on a range of electronic trading platforms.

    The bank bought back $4.9 billion in bonds half an hour later.

    German regulators say the bank also bought bond futures before the cash trade.

    The Frankfurt state prosecutor is assessing whether six Citigroup employees involved in the trade are guilty of manipulating the market. 

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    Interactive: Coding like a girl

    Interactive: Coding like a girl

    What obstacles do young women in technology have to overcome to achieve their dreams? Play this retro game to find out.

    America's Guns: Secret Pipeline to Syria

    America's Guns: Secret Pipeline to Syria

    How has the international arms trade exacerbated conflict in the Middle East? People and Power investigates.

    I remember the day … I designed the Nigerian flag

    I remember the day … I designed the Nigerian flag

    In 1959, a year before Nigeria's independence, a 23-year-old student helped colour the country's identity.