(by Peter Van Bruggen)

Seoul-based Citigroup in its internal memo disclosed regret about the transaction that had an impact on the European sovereign bond market. The memo targets at soothing regulators.

"Citigroup is having a difficult time at the moment. Everyone is criticising them and this is testimony to what they are going through," said the head of one European debt management office. Really, debt managers are very interested in the issue as they are the main issuers of the sovereign bonds auctioned.

Citigroup has already got a huge amount of money from debt sales having earned $18 million from European governments. The contrition surely will sooth angry governments, regulators and banks, but the easy-reached disclosure of the memo can be regarded as manipulative, analysts note.