Citi engages law firm to oversee Banamex investigation -WSJ

June 5 Thu Jun 5, 2014 8:20pm EDT

June 5 (Reuters) - Citigroup Inc has engaged law firm Willkie Farr & Gallagher to supervise the U.S. bank's investigation into loans made at its Mexican unit Banamex, the Wall Street Journal said on Thursday.

The bank reached out to the law firm "immediately" after being made aware of the losses, the paper reported, citing a spokesman for the company's board. (link.reuters.com/sep89v)

Citigroup, the third-largest bank by assets in the United States, said in February it had discovered some $400 million in fraudulent loans at Banamex, prompting the bank to reduce its 2013 profit by $235 million.

Citi has fired four senior executives and seven other employees in relation to the incident, saying they had failed to protect the bank from loan fraud at Banamex.

A Citigroup spokesman declined to comment. Willkie Farr & Gallagher was not immediately available for comment. (Reporting by Narottam Medhora in Bangalore and Daniel Levine in San Francisco; Editing by Mohammad Zargham)

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