Skip to content
Subscriber Only

Banamex Said to Snub Citigroup Oversight as Fraud Mounted

Efforts by Citigroup Inc. senior executives to tighten controls in Mexico were rebuffed by managers there for at least five years before the U.S. bank found the local unit had suffered a $400 million loan fraud last month, four people with direct knowledge of the matter said.

Employees at Grupo Financiero Banamex SA process some documents by hand instead of using modern information systems that make it easier to detect flawed loans, said another person. The people, who include current and former U.S. executives of Citigroup, requested anonymity because the matter isn’t public.