Leading Mexican senators said they are planning to call on the head of Citigroup Inc.’s Mexican unit, Manuel Medina-Mora, and other top officials at the bank to testify at a public hearing as they attempt to make sense of the alleged fraud committed by Citigroup client Oceanografía.
Citigroup executives wouldn’t be obligated to attend and testify, as they aren’t public servants. But refusing to participate would be embarrassing for the bank, the senators said….
“Top officials at the bank should come and explain in detail its relationship with this company,” said Senator Roberto Gil of the conservative opposition National Action Party, or PAN. He said the party supports calling Mr. Medina-Mora in for a hearing….
Oceanografía, Mexican oil-services company, allegedly falsified the amount of receivables from Mexican state-oil firm Petróleos Mexicanos, or Pemex, to secure financing from Citigroups’s Banco Nacional de México unit, or Banamex. The New York-based bank said the company racked up as much as $400 million in bad loans with Banamex, a loss which prompted Citigroup to cut its 2013 net income by about $235 million and consider compensation clawbacks.
Mexico will support Argentina’s bid for U.S. Supreme Court review of an appellate ruling that the owners of repudiated bonds must be paid in full when the South American country makes payments on its restructured debt, Finance Minister Luis Videgaray said….
“We believe there’s a real risk that a Supreme Court decision against Argentina’s interests could create a precedent that would make future sovereign restructurings much more difficult and costly,” Videgaray said.