SEC investigates firms, including Citi and Goldman, over bond sales

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US regulators have begun looking into whether major Wall Street firms, including Goldman Sachs and Citigroup, have favoured top investors over others in the sale of bonds for some of the world’s largest companies.

The Daily Telegraph reports that the Securities and Exchange Commission (SEC), the US market watchdog, has asked for information from several investments banks over the way they have allocated offerings of new debt sales from the likes of Verizon Communications and Apple.

According to unnamed sources cited by the Wall Street Journal, Goldman Sachs and Citigroup are among the banks said to be cooperating with the SEC’s inquiry over the allegations that some customers have received preferential allotments of corporate bonds.

There is no suggestion of any wrongdoing by any bank and the investigation is at an early stage, with officials sending out the information requests in the final quarter of last year, according to the paper.

To access the complete Daily Telegraph article hit the link below:

US officials probe Wall Street bond sales

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