Oct 3, 2014 4:36 PM

Citigroup Mexico unit director resigns

The Associated Press

MEXICO CITY (AP) Citigroup's Mexico unit announced the resignation of its director Friday, and the chairman of the board said the move came after this year's "difficulties," without specifically citing Banamex's announcement earlier this year that it had lost about $400 million on loans to a Mexican oil services company.

Banamex said in a statement to the Mexican Stock Exchange on Friday that General Director Javier Arrigunaga had "decided that new leadership was needed." Ernesto Torres Cantu will take over the directorship, it said.

Board chairman Manuel Medina Mora said only that the decision came "in light of the difficulties that our institution has suffered over the last year." He did not mention the fraud case involving the Mexican oil services company Oceanografia.

In May, Banamex fired 11 employees for not following proper procedures in dealing with Oceanografia.

Banamex said Oceanografia used falsified invoices as collateral to obtain $585 million in loans. After an investigation, Citigroup could verify only $185 million of invoices.


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