crimeandpunishment

CRIME AND PUNISHMENT - REALITY AND FANTASY

Manuel Medina-Mora

Co-President of Citigroup Mexico and CEO of Citi’s Global Consumer Bank

In Recent News

In recent news, Manual Medina-Mora is set to retire in June with a 2014 compensation of $9.5M – $2M more than the company’s CFO, John Gerspach.

 

“The board faulted Gerspach for the 2014 stress test failure and cited Medina-Mora for control issues at Banamex, the company’s unit in Mexico that last year lost more than $500 million to fraud involving a borrower.”

Reuters | March 18, 2015 | Avik Das in Bengaluru and David Henry in New York

Citigroup Mexico Executives Paid Millions Despite Rampant Corruption

The Accused

Manuel Medina-Mora, Co-President of Citigroup Mexico and CEO of Citi’s Global Consumer Bank. He has been an employed with Banamex since 1976, since earning his MBA from Stanford University. He was paid $9.5 million in 2014 despite the fact that Citigroup Mexico was found to be running a rogue security unit that was spying on various people. Remarkably, risk and strategy chief Brian Leach was paid $8.1 million, despite getting ripped off a whopping $400 million by one its clients. 

Manuel Medina-Mora

Co-President of Citigroup Mexico and CEO of Citi’s Global Consumer Bank

The Crime

Manual Medina-Mora has been accused of being lax in oversight regarding a $400 Million kickback scheme at Citigroup. Citigroup Mexico is located in Mexico City, Mexico and is operating as Banamex. Banamex is the second-largest bank in Mexico and over a century old, while Citigroup has been established in Mexico since 1929. In 2001, Citigroup purchased Banamex for $12.5 Billion.

New York Times | October 14, 2014 | Michael Corkery and Jessica Silver-Greenburg

Real Punishment

According to the New York Times, “Manuel Medina-Mora has been asked to retire and is quietly being removed from Citigroup Mexico over the next several months…Still, Mr. Medina-Mora’s business acumen and connections to the country’s ruling elite have made him critical to the bank’s success in Mexico. Citigroup and its chairman, Michael E. O’Neill, cannot afford to alienate Mr. Medina-Mora and risk jeopardizing those relationships, these people said.”

The law in our hands

In Mexico, connections trump corruption, even though Citigroup is an American corporation, they seem to hardly blink an eye at the massive corruption that has taken place in the Mexican division of the bank, or the fact that that division’s security arm has basically gone rogue.  Top management should have been completely replaced when the fraud by the politically connected firm was discovered. Citigroup management in the US is letting the need for short term profits trump the obvious moral failings of the Mexican unit.

 Oceanografía and they should have recieved no compensation.

In Recent News

In recent news, Manual Medina-Mora is set to retire in June with a 2014 compensation of $9.5M – $2M more than the company’s CFO, John Gerspach.

 

“The board faulted Gerspach for the 2014 stress test failure and cited Medina-Mora for control issues at Banamex, the company’s unit in Mexico that last year lost more than $500 million to fraud involving a borrower.”

Reuters | March 18, 2015 | Avik Das in Bengaluru and David Henry in New York
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