Citigroup Mexico unit cites 'difficulties' in director's resignation, following fraud losses

Markets Associated Press

Citigroup's Mexico unit has announced the resignation of its director, and the chairman of the board says the move came after this year's "difficulties."

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Citigroup's Banamex subsidiary announced earlier this year it had lost about $400 million on loans to a Mexican oil services company.

Banamex said in a statement to the Mexican Stock Exchange Friday that General Director Javier Arrigunaga had "decided that new leadership was needed."

Board chairman Manuel Medina Mora said that decision came "in light of the difficulties that our institution has suffered over the last year," but did not specifically mention the fraud case.

In May, Banamex fired 11 employees for not following proper procedures in dealing with Mexico's Oceanografia company.

Banamex said Oceanografia had used falsified invoices as collateral to obtain the loans.