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Economy
In reply to the discussion: Weekend Economists Examine the Root of All Evil: February 28-March 2, 2014 [View all]xchrom
(108,903 posts)79. CITIGROUP LOWERS 2013 PROFIT ON MEXICO FRAUD
http://hosted.ap.org/dynamic/stories/U/US_CITIGROUP_MEXICO?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-02-28-19-36-07
Citigroup reduced its 2013 earnings by $235 million on Friday, saying it was a victim of fraud committed by a Mexican oil services company to secure hundreds of millions of dollars in short-term loans.
The U.S. bank is seeking to recover the missing funds with the help of Mexican authorities.
The bank said that the oil services company - Oceanografia S.A. de C.V., or OSA - overstated by $400 million the business it was doing with Mexico's state-owned oil company Petróleos Mexicanos, or Pemex. OSA used falsified invoices as collateral for $585 million in loans from Citigroup's Mexican unit, Banamex, Citigroup said. But after an investigation, Citigroup could only verify $185 million of invoices.
Citi said that it believes the case is isolated, and it is moving to recover the money and identify anyone involved in the fraud.
***oh the irony.
Citigroup reduced its 2013 earnings by $235 million on Friday, saying it was a victim of fraud committed by a Mexican oil services company to secure hundreds of millions of dollars in short-term loans.
The U.S. bank is seeking to recover the missing funds with the help of Mexican authorities.
The bank said that the oil services company - Oceanografia S.A. de C.V., or OSA - overstated by $400 million the business it was doing with Mexico's state-owned oil company Petróleos Mexicanos, or Pemex. OSA used falsified invoices as collateral for $585 million in loans from Citigroup's Mexican unit, Banamex, Citigroup said. But after an investigation, Citigroup could only verify $185 million of invoices.
Citi said that it believes the case is isolated, and it is moving to recover the money and identify anyone involved in the fraud.
***oh the irony.
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