Citi takes action after $400m problem

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More will face punishment.

Citigroup, the U.S. bank investigating a $400m loan fraud at its Mexico unit, fired 11 people for failing to prevent or discover the wrongdoing and said more will face punishment.

Bloomberg News reports that the dismissals affect four managing directors, including two heads of business units in Mexico, according to a memo sent and signed by CEO Michael Corbat. All 11 are based in that country, said a person briefed on the investigation who asked to remain anonymous because the information isn’t public. The bank previously fired one person.

'While our internal investigation is ongoing, we have unfortunately identified additional employees across business and functional lines whose actions or inactions failed to protect our company from this fraud', Corbat said in the memo. More people inside and outside Mexico may be punished, he wrote.

To access the complete Bloomberg article hit the link below:

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