U.S. Hedge Fund Supposedly Knew About Intervention
By Claus Tigges
FRANKFURT. The intention of the European Central Bank to intervene in
favor of the euro, along with other leading central banks, was apparently
known several hours before the actual price-supporting currency purchases
were carried out last Friday, according to market sources in Frankfurt.
Supposedly, there was a leak in one of the participating central banks not in
the euro-zone. On hearing about the impending intervention, Citibank, one
of the leading currency traders worldwide, began buying up euros in large
volumes for a U.S. hedge fund company, according to the rumor.
The price of the euro had risen slightly against the dollar to more than $0.86
on Friday morning. According to sources at banks in Frankfurt, the
suspected purchases and subsequent sales of currency by Citibank were
ostensibly the reason that the euro did not climb to $0.90 following the
intervention, which took place at 1 p.m. CET.
A possible connection between the hedge-fund company, the bank and the
central bank has been found in the person of former U.S. Finance Minister
Robert Rubin, who is currently co-chairman of Citigroup.
[...]
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