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This article is more than 3 year old.

Citi settles US SEC charges over bad controls, supervision

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Citigroup agreed to pay $10.5 million to settle two separate complaints, one relating to bad loans made by its Mexican subsidiary, Banamex, between 2008 and 2014, US regulators said on Thursday.

Citi settles US SEC charges over bad controls, supervision
Citigroup agreed to pay $10.5 million to settle two separate complaints, one relating to bad loans made by its Mexican subsidiary, Banamex, between 2008 and 2014, US regulators said on Thursday.
The other concerned a trader mismarking illiquid positions and unauthorized proprietary trading by Citigroup Global Markets Inc (CGMI) from 2013 to 2016, the Securities and Exchange Commission said.
"Fraudulently-induced loans" made by Banamex to Oceanografia that led to $475 million in losses were the result of inadequate controls that prevented them from registering 'numerous red flags' in the borrower's documents," the SEC said in a statement.
The regulator also said inadequate supervision allowed CGMI traders to mismark illiquid positions and cover up $81 million in losses.
"We are pleased to have these matters resolved," Danielle Romero-Apsilos, a spokeswoman for Citi Global said in an email.
Citigroup and CGMI settled the allegations without admitting or denying the SEC's findings.