Jean-Claude Trichet, president of the European Central Bank, yesterday called for a “thorough and deep” investigation into Citigroup's controversial eurozone bond trades last August.
Mr Trichet's comments on the case are the first by a top-level European policymaker and a severe embarrassment for Citigroup, which has been at pains to repair strained relations with eurozone governments. The ECB president said he felt “very very strongly” that fairness was essential to the efficient operation of financial markets. “We have an enormous stake in markets functioning fairly and correctly,” he said in response to a question about Citigroup's actions. Citigroup's lightning-speed sale of eurozone bonds worth about €12bn ($15.6bn) on August 2 disrupted trading on the pan-European MTS electronic system. The bank later bought back some €4bn-worth of the bonds at lower prices, making an estimated €17m in profits.
