Citi considers pay cuts and clawbacks after 'despicable crime'

Sombrero

Citigroup will consider clawing back compensation or shrinking 2014 pay for any employees linked to a $400m loan fraud at its Banamex unit in Mexico.

Bloomberg reports that the loss hasn’t yet prompted Citigroup to change 2013 awards to its highest-ranking and best-paid leaders, as an internal review is still in an early stage, the bank said Wednesday in a regulatory filing.

While the fraud was just uncovered last month, the firm said it did shrink pay 14% for Manuel Medina-Mora, a co-president who oversees the Mexico unit, as it considered 'control issues' identified last year in Banamex’s U.S. operations.

The threat of clawbacks for executives builds on Chief Executive Officer Michael Corbat’s promise of accountability for fraud on loans to a Mexico oil-services firm that cut last year’s profit by $235m. Corbat has called the incident a 'despicable crime' and vowed to punish anyone responsible. The firm already has shrunk the Mexico unit’s compensation pool.

To access the complete Bloomberg article hit the link below:

Citigroup Considers Pay Cuts, Clawbacks After Fraud Hits Banamex

JPMorgan to HSBC Face EU Rate-Rigging Fines From Almunia

JefferiesAnd the Best Place to Work in the global financial markets 2017 is...

Register for Financial Markets News Alerts