Reuters - Venezuela said pays Citi for gold, Deutsche Bank faces fresh challenge

Gold Dollar

Venezuela’s central bank in April paid $172m to U.S. bank Citigroup to recover part of the gold it had put up as guarantee in a swap operation, according to two sources familiar with the situation.

Reuters reports that sanctions levied by U.S. President Donald Trump last year bar U.S. banks from carrying out financing operations with Venezuela, meaning such swaps cannot be renewed.

“Citibank got paid,” said a local finance industry source familiar with the negotiation who asked not to be identified.

Venezuela central bank pays Citi $172 million to recover swapped gold - sources

In the meantime, the news agency also reports that Deutsche Bank will face another challenge this month when the Federal Reserve publishes the results of a “stress test” on the bulk of its U.S. operations for the first time.

The bank is already facing challenges with U.S. bank regulators and in financial markets, with its stock price falling to historic lows on Thursday. Standard & Poor’s downgraded its credit rating to BBB+ from A- on Friday.

Deutsche Bank faces another challenge with Fed stress test

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