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Citigroup Firings Back CEO Pledge for Change After Fraud

Citigroup Inc. Chief Executive Officer Michael Corbat spent almost three months talking about his intent to change the bank’s culture after fraud and a regulatory review exposed weak controls. Yesterday he took action.

Citigroup fired 11 people, including four managing directors, for failing to prevent or discover a $400 million loan fraud at its Mexico unit, according to an employee memo yesterday signed by Corbat. The bank’s investigation continues and more people will probably be punished, he said.