Citigroup (C) has axed another 11 employees over the embarrassing and costly fraud unearthed at the bank's Mexican subsidiary Banamex.
The terminations include four managing directors, two of whom are business heads in Mexico, Citi said in an internal memo to employees Wednesday.
Citi said its ongoing investigation has identified additional employees who could be at fault and expects that several will receive disciplinary action. The bank previously announced the firing of one individual related to the fraud.
"The financial impact of this fraud has been significant," Citi CEO Michael Corbat said in the memo, but the "impact to our credibility is harder to calculate."
The New York bank already took a $235 million loss from the loan fraud, which involved misappropriated funds to Banamex client Oceanografia, a Mexican oil services company that had been a key supplier to state-owned oil company Pemex.
Citi said it continues to believe this was an "isolated incident," though it is reviewing its controls and processes in Mexico and cooperating with regulators and authorities. U.S. authorities are probing Citi and Banamex's anti-money laundering controls.
Despite the recent turmoil, Corbat said Banamex, which Citi acquired in 2001 for about $12.5 billion, remains an "integral part of our global network and a source of great pride for our franchise."
It's been a difficult few months for Citi, America's third largest bank, which in March was dealt a blow by the Federal Reserve rejecting the bank's dividend and share repurchase plans.
Shares of Citi were trading down around 0.75% Wednesday morning.
A judge in New York has ordered Fabrice Tourre, a former Goldman Sachs (GS) executive, to pay $825,000 in civil penalties for his part in a mortgage deal that prosecutors say was designed to fail.
Tourre was the only person named by the Securities and Exchange Commission when it accused Goldman in 2010 of defrauding investors in the 2007 sale of securities tied to subprime mortgages.
The SEC claimed that Tourre and MOREBen Rooney - Mar 12, 2014 12:19 PM ET
Muddy Waters may be best known for spotting fraudulent accounting practices across Chinese companies, but the short-selling firm has made its first call against a U.S. company.
Muddy Waters, run by Carson Block, issued a "strong sell" rating on American Tower, a Boston-based wireless and broadcast tower provider, and valued the company at $44.57 per share -- down 40% from its current price.
"AMT has serious challenges domestically and internationally that have MOREHibah Yousuf - Jul 17, 2013 1:54 PM ET
Federal law enforcement officials arrested a Florida man Tuesday for allegedly defrauding investors by telling them he had access to shares of Facebook before its initial public offering.
The U.S. Attorney's office in New York said Craig Berkman, 71, received a total of $8 million from investors who thought they were investing in Facebook (FB) prior to the social network's IPO last year.
Berkman also allegedly misled investors about his access to MOREBen Rooney - Mar 19, 2013 3:49 PM ET
British banking giant HSBC has been accused of providing accounts on the island of Jersey for alleged drug dealers and gun runners.
HM Revenue & Customs, the U.K. tax authority, has obtained details on every British client of HSBC in Jersey after a whistleblower leaked the data, according to the Daily Telegraph.
The newspaper claims that the list of more than 4,000 clients includes drug dealers, gun runners, bankers accused of fraud MOREBen Rooney - Nov 9, 2012 11:23 AM ET
Not a member yet?Sign up now for a free account
|Silk Road's Ross Ulbricht sentenced to life|
|American Express president Ed Gilligan dies at 55|
|IPhone hacked? How to get back into Messages|
|Why hasn't '19 Kids and Counting' been canceled? It's complicated|
|From Millennial to millionaire -- in 5 steps|