On Air Now

Upcoming Shows

Program Schedule »

Tune in to Listen

1440 AM Green Bay, WI

Weather

Current Conditions(Green Bay,WI 54303)

More Weather »
62° Feels Like: 62°
Wind: NW 5 mph Past 24 hrs - Precip: 0”
Current Radar for Zip

Tonight

Partly Cloudy 55°

Tomorrow

PM Thunderstorms 77°

Wed Night

Scattered Thunderstorms 54°

Alerts

  • 0 Severe Weather Alerts
  • 0 Cancellations

Mexico bank regulator, Citigroup report second fraud at Banamex

A Citibank sign on a bank branch in midtown Manhattan, New York, November 17, 2010. REUTERS/Mike Segar
A Citibank sign on a bank branch in midtown Manhattan, New York, November 17, 2010. REUTERS/Mike Segar

MEXICO CITY (Reuters) - Citigroup and Mexico's bank regulator on Monday said they uncovered a second fraud at Citi's local unit Banamex, as part of a wider investigation following the discovery in February of fraudulent loans to oil services company Oceanografia.

Mexico's National Bank and Securities Commission (CNBV) said the investigation found another company with under $30 million in fraudulent loans.

Citigroup in February said it found $400 million in bad loans at Banamex, Mexico's No.2 bank by assets, made to Oceanografia and backed by apparently fraudulent invoices to state-owned oil company Pemex.

Citi, in the course of reviewing over $14 billion in financing, found a second company that had also received loans backed by Pemex receivables that had "similar issues" to Oceanografia, Chief Financial Officer John Gerspach said on a call discussing the bank's first-quarter results.

Mexico's CNBV is investigating whether the second company has similar loans with other banks, the regulator's statement said.

The CNBV said it is close to completing an investigation of Banamex's controls and processes.

(Reporting by Elinor Comlay; Editing by Jonathan Oatis)

Comments