Citi’s Bout Of Montezuma’s Revenge Not Entirely Unforeseeable


La Casa de Corbat may have had an inkling about the problems that led to its $400 million Mexican nightmare. Or it may not have read all of those long, boring missives that the New York Fed insisted on sending year after year.

The Fed review, briefly mentioned in the regulator’s annual letter to Citi’s top brass in January 2009, targeted Banamex’s “internal control environment” and anti-fraud measures….

The 2009 letter from the New York Fed and similar letters from previous years show that one of Citi’s primary regulators also identified problems with the bank’s risk-monitoring program years before the government publicly took Citi to task.

New York Fed Studied Controls at Citi’s Banamex [WSJ MoneyBeat blog]