Report - Two rogue traders put Citi's controls back in spotlight

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'The bank had fired two fixed income traders for violating its code of conduct'.

Reuters reports that Citigroup's Mexican subsidiary Banamex fired two bond traders after uncovering rogue trading last year, two sources close to the matter said, raising fresh questions over what controls the troubled unit had in place to police employees.

Banamex suffered paper losses from unauthorized trading that ran into the millions or perhaps even tens of millions of dollars, the sources said.

A spokeswoman for Citigroup confirmed the bank had fired two fixed income traders for violating its code of conduct and said in a written statement that the bank 'escalated the issue to regulators and took immediate action against' the individuals.

Citigroup said in February that it has discovered at least $400m in fraudulent loans in its Mexico subsidiary and said employees may have been in on the crime.

Hit the link below to access the complete Reuters article:

Citigroup uncovered rogue trading in Mexico, fired two bond traders

Citigroup reports fraud in Mexico unit, lowers 2013 results

 

 

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