Firings at Citigroup back up CEO's promise of change

Citi Building Sign

Citigroup CEO 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.

Bloomberg News reports that Citigroup fired 11 people, including four managing directors, for failing to prevent or discover a $400m loan fraud at its Mexico unit, according to an employee memo Wednesday signed by Corbat, 54. The bank’s investigation continues and more people will probably be punished, he said.

'He’s clearly sending a message', said Charles Peabody, a Portales Partners analyst who assigns the equivalent of a sell rating to the shares. 'This is the first sign I have seen where he is holding senior managers accountable. That has been lacking in that culture'.

The dismissals are said to included two business heads. Among those fired were the chief of risk for the institutional clients group in Mexico and the head of trade in the nation, a person briefed on the matter said yesterday, asking to remain anonymous because the information isn’t public.

To access the complete Bloomberg article hit the link below:

Citigroup Firings Back CEO Pledge for Change After Fraud 

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