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Citigroup : fires 11 more in fraud probe of Banamex unit-memo

Citigroup : fires 11 more in fraud probe of Banamex unit-memo

Citigroup Inc has fired four senior executives and seven other employees who failed to do enough to protect the bank from a fraud at its Mexican unit Banamex, according to an internal memo sent to staff on Wednesday.

The 11 people who were terminated came after an employee was fired in February, around the time the bank announced it had discovered fraudulent loans at Banamex. The bank believes the first staff member was directly involved, while the other terminated employees did not do enough to protect the bank from the fraud, Citigroup Chief Executive Officer Mike Corbat wrote in the memo obtained by Reuters.

The firings underscored the extent of Citigroup’s problems at Banamex, where it has discovered some $565 million in fraudulent loans, suffered losses on loans made to homebuilders in Mexico, and fired a pair of rogue traders.

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