The Mexican loan calamity; wherein Citiigroup's Mexican extension Banamex loaned $400 million to a company that could not pay them back, has thus far has been equal part expensive, embarrassing and generally damaging for the company. The scandal has now has claimed its next round of victims.
11 Banamex employees, including four high ranking executives, were fired in connection with the fraud currently under investigation by U.S. Department of Justice.
So far there had only been one firing in connection with the $400 loan to politically connected but financially troubled oil services company Oceanografíat--a regional bank employee who allegedly falsified documents that helped the company get the loan.
The latest round of firings, included the head of corporate banking, the head institutional risk officer, the head of trade finance and the head of trade and treasury solutions. Some of the employees fired in the purge had been at Banamex for close to 20 years and had no direct involvement with the fraud. They found themselves on the chopping block for failing to detect the fraud.
And the firings aren't over yet, according to Chief Executive Michael Corbat.
"Before our investigation concludes, we expect several other employees, both inside and outside Mexico, may receive forms of disciplinary action as well,” wrote Corbat in a memo to employees on Wednesday, reports The New York Times
No Citigroup executives in the United States have gotten the sack yet, though many face pay cuts and other disciplinary action in relation to the fraud.
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