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.
First Published: IST