Mexico Regulators Face Off Over Competing Probes Into Bond-Market Collusion
- Conflicting instructions to banks could delay the outcome
- Dispute highlights rising tensions between two agencies
Pedestrians walk by the Banco de Mexico building in Mexico city, Mexico, on Wednesday, Feb. 27, 2013.
Photographer: Susana Gonzalez/BloombergThis article is for subscribers only.
Mexico’s financial regulator is advising banks to limit the information they provide to antitrust authorities as the two agencies undertake separate investigations into possible bond-market manipulation, according to three people with knowledge of the matter.
The conflicting instructions could obstruct or delay the probe, which focuses on whether so-called market makers and other players who buy government notes at auctions colluded to suppress prices. Any wrongdoing may have cost the government millions in higher borrowing costs.