Citigroup 'regrets' controversial bond trades

Citigroup says it regrets its controversial bond transaction at the beginning of August when it pushed through EUR11 billion of securities in two minutes over the MTS platform.

Be the first to comment

Citigroup 'regrets' controversial bond trades

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

In an internal memo to corporate and investment banking employees, Citigroup's head of global capital markets, Tom Maheras, says the bank regretted the bond dealings, which prompted investigations by European regulators.

Maheras says: "We regret having executed this transaction. Unfortunately, we failed to fully consider its impact on our clients, other market participants, and our regulators."

He adds that the bank is cooperating with investigations into the transaction.

Citigroup sold EUR11bn worth of European government bonds in two minutes over the MTS platform on 2 August, before re-entering the market half an hour later and buying them back at cheaper prices.

MTS has now lifted trading restrictions it imposed on the market immediately after the sale, which limited the value and volume any one dealer can push through the system at a time.

Sponsored [Impact Study] Fraud and AML Case Management: How to Operate at the Speed of Risk

Comments: (0)

[Webinar] Ensuring Interoperability in the Age of Global, Cross-Border e-InvoicingFinextra Promoted[Webinar] Ensuring Interoperability in the Age of Global, Cross-Border e-Invoicing