SEC Opens Probe Into Citigroup’s Mexican Operations

The Securities and Exchange Commission is investigating Citigroup for accounting fraud and possible violations of the Foreign Corrupt Practices Act after the bank revealed a number of fake loans that had been issued from its Mexican unit, Banamex, Reuters reports. Citigroup reduces 2013FY earnings Citigroup Inc (NYSE:C) reported last Friday that it had discovered $400 million in bad loans originating from Banamex, and that it was reducing its 2013 full year earnings by $235 million, down to $16.37 billion, to account for the loss. The SEC opened its probe following the bank’s announcement. The loans went to Mexican oil services…