Citigroup reports fraud in Mexico unit, lowers 2013 results
Published on Mar 1, 2014 3:55 AM
MEXICO CITY (REUTERS) - Citigroup Inc said on Friday that it has discovered fraudulent loans in its Mexico subsidiary and that employees may have been in on the crime.
The bank wrote down bogus loans to a company whose assets Mexican law enforcement officials have now seized, cutting Citigroup's 2013 profit by US$235 million (S$297 million) to US$13.67 billion.
Citigroup Chief Executive Michael Corbat called the incident a "despicable crime" and said the bank believes it was an isolated episode.
The bad loans were made to Mexican oil services company Oceanografia , a contractor for the nation's state-owned oil company, Pemex .
To continue reading, log in if you are a subscriber
If you are not a subscriber, you can get instant, unlimited access here