Manuel Medina-Mora

  • 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. Read more »

Citigroup executive Manuel Medina-Mora has spent decades cultivating his influence in Mexico, so much so that people in the bank refer to him as Mr. Mexico. It is a hard time to hold that title. Mexico, once a bright spot for Citigroup, is facing a string of problems. The most recent came this month with the announcement in Citigroup’s annual report that regulators and the U.S. attorney in Massachusetts were asking questions about the anti-money-laundering compliance procedures at the U.S. unit of Banamex…The disclosure of the probes came three days after Citigroup said it would have to reduce its previously disclosed 2013 profit by $235 million after a $400 million loss in its Mexico unit due to a potentially fraudulent account the bank had with oil-services firm Oceanografía SA…the string of issues could create friction between Mr. Medina-Mora and Citigroup CEO Michael Corbat, said people familiar with both men’s thinking. “If another preventable loss occurs” in his area, “then I think [Mr.] Medina-Mora would likely be held accountable by Citi’s board in some way or fashion,” says Brian Kleinhanzl, a banking analyst at KBW. [WSJ]