London trader accused of wiping 4.6 per cent off Greek bank share with ONE 'damaging email'



[headerlink

A London trader will be questioned by police after he was accused by Greek authorities of allegedly sending an email which sent markets crashing.

Paul Moss who works at the London-based Citigroup allegedly sent an email from the Canary Wharf office and said Greece would restructure its debt as soon as the weekend.

He is now being accused of causing a 4.6 per cent drop in Greek bank shares.

Drop: British market trader Paul Moss will be questioned by Greek authorities after he allegedly sent an email about debt restructuring in the country

The country has been excluded from financial markets because of the crippling debt crises it suffered last year.

However, authorities have constantly tried to ease investment fears by saying the debt is manageable.

Greek police confirmed they had recovered a computer from the US bank Citigroup and plan to question Mr Moss about the 'damaging email'.

'We have located a computer terminal at a company in London from which this very damaging email was sent,' police spokesman Thanassis Kokkalakis told The Independent.

'It contained very confusing misinformation that is now the focus of an urgent investigation and this man will be questioned and the findings sent to a prosecutor.'

There have been suggestions that Britain's Serious Organised Crime Agency would be involved in the investigation however, they have refused to confirm this.

Citigroup has said it is co-operating with authorities but said it did not believe there had been any wrongdoing.

It is believed the email was sent from Mr Moss, 45, in the afternoon last Wednesday, minutes after the market started losing ground.

Last year the EU and the International Monetary Fund gave Greece a £97bn bail-out and there is speculation it will not meet repayments, potentially causing chaos among the euro zone.

The huge debt has also pushed interest rates on debts due for repayment in 10 years to 15 per cent.

Despite speculation that the country will fail to pay back debt, finance minister George Papaconstantinou said Greece would deal with its debt and denied a restructuring.

The contents of the email said there would be 'increased noise' over a Greek debt restructuring which would happen as early as the Easter weekend.

This is the second time in a few months that Greek prosecutors have taken action on unsubstantiated email which allegedly caused market jitters.

Greek authorities arrested a jobless man for spreading rumours after he allegedly sent an email to banks and the media from an internet cafe. He is facing misdemeanour charges.