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Non-Tech : The Enron Scandal - Unmoderated -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (2142)	6/3/2002 1:28:13 AM
From: The Duke of URL©	Read Replies (1) \| Respond to of 3602

Pigeons coming home to roost? Citigroup receives SEC subpoenae for Dynegy deal-WSJ 31 May 2002, 03:34am ET - - - - - NEW YORK, May 31 (Reuters) - The Securities and Exchange Commission has subpoenaed Citigroup Inc. (NYSE:C) for information of a natural gas transaction that improved the appearance of Dynegy Inc.'s (NYSE:DYN) finances, the Wall Street Journal reported on Friday, citing people familiar with the matter. The Journal said it was unclear to what extent the bank is a target of the investigation or whether it is simply being asked to provide information to aid the government's investigation into energy-trading Dynegy. Citigroup, the No. 1 U.S. financial services company, arranged a loan of $300 million that ended up with a specially created entity. This entity entered a series of gas-trading contracts with a partnership called DMT Supply LP, in which Dynegy held a stake. During the first nine months of the gas deal, DMT bought gas from the entity at prices below the market rate and resold it at a profit, Dynegy said in April. A number of energy-trading companies have acknowledged sham trades aimed at artificially pumping up trading revenue and volume -- buying and selling power at the same price with the same counterparty. Citigroup officials were not immediately available for comment. Gee I wonder, and I'm just speculating what will happen when the SEC finds out that had the Glass Stegal act repealed so that it could pop Dyegy Stock when the fraudulent earnings were reported and short Dynergy when it pulled the loans and the dummy transactions were reported, just like enron? Nothing?.......buzzzzt, right again!