Dow Jones
FRANKFURT A Citibank spokesman late Thursday denied a newspaper report that Citi officials had prior knowledge of the Sept. 22 market intervention to support the euro by the European Central Bank and other central banks of the Group of Seven countries.
No individual at Citigroup had advance knowledge of last weeks intervention in the euro market, Citibank spokesman Christian Kroos in Duesseldorf said, citing a statement Citibank issued late Thursday.
Earlier Thursday, the bank had said it would not comment on market rumors.
The ECB said it would not comment on the newspaper report.
The German daily Frankfurter Allgemeine Zeitung reported Thursday that the ECBs intent to intervene in the foreign exchange market together with the U.S. Federal Reserve, the Bank of Japan, and other G-7 central banks, was known several hours ahead of time.
The paper attributed the statement to market participants in Frankfurt.
A leak by a central bank outside the euro zone prompted Citibank, a unit of Citigroup Inc., to start buying euros on behalf of a U.S. hedge fund early last Friday, Sept. 22, the newspaper reported.
Banking sources attributed the leak to a possible connection between the hedge fund, Citibank and the Fed, FAZ said. Robert Rubin, former U.S. Treasury Secretary, is currently Citigroup's co-chairman.
