MarketWatch reports that employees should have had elevated concerns, Corbat told the investor audience. The firm will work to make employees more comfortable to raise those concerns in the future, he said.
Citigroup has fired 11 employees for their inaction and one person directly connected with the fraud, according to a report in The Wall Street Journal.
The bank reported in February it lost $400m on loans its Banamex unit made to oil services company Oceanografia.
The fraud allegations were revealed just before the Federal Reserve’s stress test process, known as CCAR, where financial firms submit capital plans. The bank’s plan was ultimately rejected by the Fed.
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