WASHINGTON -- Fed Chairman Alan Greenspan told Congress that his agency had asked Indian bank regulators for results of their probe of securities trading by affiliates of Bank of America and Citibank.
The investigation was launched in connection with a securities scandal that rocked India's financial sector this year.
Regulators charged that leading stockbrokers in India had diverted about $1.2 billion from many state-run and foreign banks to buy stocks and bolster the Indian market.
Interim Report Cited
Mr. Greenspan discussed the matter in an Oct. 30 letter to Rep. John Dingell, D-Mich., chairman of the House Energy and Commerce Committee.
The Fed chief noted that a July interim report by the Reserve Bank of India had called for an investigation into the securities activities of Bank of America, Citibank, and two other foreign banks.
Mr. Greenspan said that in addition to communicating with Indian regulators, the Fed had "requested and reviewed information directly from the banks" and was in touch with them regarding the Reserve bank of India's review.
