FRANKFURT, Germany, March 7 (UPI) -- Citigroup might face disciplinary action by the Eurex market exchange, the Deutsche Welle reported Monday.
According to regional state authorities, the U.S. banking giant, Citigroup may face Eurex's disciplinary committee concerning controversial bond trades made by the company in August.
After an inquiry by regional stock exchange authorities in the German state of Hesse, authorities found evidence of breach of trust, said Hesse Economics Minister Alois Rhiel.
Rheil, charged with regulating Frankfurt's financial markets, said the committee could fine the bank or its traders up to $330,000 or impose a 30-day trading ban. He also said the disciplinary committee may take longer than 8 weeks to review the case.
In August, Citigroup flooded the cash market with $14.5 billion (11 billion euros). Nearly a half hour later, Citigroup allegedly re-purchased its bonds worth $5.2 billion (4 billion euros) at a lower trading price.
The action raised suspicion Citigroup was manipulating the market for its own gain. The U.S. company allegedly made $22.4 billion (17 million euros) as a result of the action.
