Grupo Financiero Galicia note sales under investigation by Argentine securities commission

By Angela McDaniels

Seattle, Jan. 24 - Grupo Financiero Galicia SA and its subsidiary Banco de Galicia y Buenos Aires SA are under investigation by the Argentine securities commission for possible wrongful use of information and the possible insufficient disclosure of information relating to open market purchases and sales by the company of notes due 2014 and 2019 held by the company and issued by the bank.

The Comision Nacional de Valores of the Republic of Argentina began the investigation into the company, the bank and the boards of directors and supervisory committees of the company and bank on Jan. 18, according to a 6-K report filed with the Securities and Exchange Commission on Tuesday.

Grupo Financiero Galicia has until Feb. 14 to respond to the commission.

The company and the bank said they believe the investigation is not supported by the facts and that all actions taken by the company and the bank were in accordance with law and all applicable regulations.

Furthermore, Grupo Financiero Galicia does not believe that these proceedings will have any material adverse effect on its financial condition or on its operations or business, according to the filing.

The Buenos Aires, Argentina-based company said it will promptly respond to the commission, provide an explanation of the transactions and demonstrate the proper compliance by the company, the bank and their committee members with all the applicable laws and regulations, while vigorously defending its rights.

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