• 21 Mar 2014 at 3:38 PM
  • Banks

Manuel Medina-Mora Has A New Problem

Mexican senators would like to have a little chat with the Citigroup executive, re: a certain massive fraud. Or at least embarrass the bank (a little bit more) by making him decline the invitation.

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.

Our southern neighbor (and potential future “uniquely recalcitrant debtor”?) would also like to have a word with John Roberts & Co.

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.

Mexican Senate Plans to Call Citi Officials to Testify [WSJ]
Mexico to Back Argentina in Supreme Court Debt Case Appeal [Bloomberg]

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  1. Posted by James | March 27, 2014 at 9:27 AM

    it is not a good sign that they are facing fraud from some side. They need to investigate the issue and resolve as soon as possible because it is not good for the business and the people who have investments. I like your post because it is providing the best news about this fraud that our people do not know about thanks for having this information with us.