Argentina Suspends Citibank Operations

Argentina's National Security Commission said Citibank Argentina had violated local laws in striking a deal with litigating U.S. hedge funds. As part of the deal, the bank would not appeal US Judge Thomas Griesa's ruling that interest payments on restructured bonds, subject to Argentine law, could not be processed if the bank was allowed to make two one-off payments to help it exit its local custody business. The Argentine security commission watchdog agency suspended the bank from conducting capital market trading operations. The state-run Securities Central Depository will now receive payments from holders of Argentine sovereign debt instead of Citibank. Leonel Poblete reports from Buenos Aires. teleSUR