Mexico bank regulator, Citigroup report second fraud at Banamex
MEXICO CITY, April 14
MEXICO CITY, April 14 (Reuters) - Citigroup and Mexico's bank regulator on Monday said they uncovered a second fraud at Citi's local unit Banamex, as part of a wider investigation following the discovery in February of fraudulent loans to oil services company Oceanografia.
Mexico's National Bank and Securities Commission (CNBV) said the investigation found another company with under $30 million in fraudulent loans.
Citigroup in February said it found $400 million in bad loans at Banamex, Mexico's No.2 bank by assets, made to Oceanografia and backed by apparently fraudulent invoices to state-owned oil company Pemex.
Citi, in the course of reviewing over $14 billion in financing, found a second company that had also received loans backed by Pemex receivables that had "similar issues" to Oceanografia, Chief Financial Officer John Gerspach said on a call discussing the bank's first-quarter results.
Mexico's CNBV is investigating whether the second company has similar loans with other banks, the regulator's statement said.