Citigroup's Mexican bank fires 11 employees in scandal over alleged $400 million fraud

Citigroup's Mexican bank subsidiary says it has fired 11 employees for not following proper procedures in dealing with a Mexican oil services company that allegedly defrauded Citigroup of up to $400 million.

Grupo Financiero Banamex says in a Wednesday statement that the 11 employees of various ranks "did not follow the supervisory standards expected as part of their responsibilities." It says more employees may face sanctions.

In February, Banamex announced that the oil services company Oceanografia had used falsified invoices as collateral to obtain $585 million in loans from Banamex.

Banamex General Director Javier Arrigunaga says the bank is reviewing its risk controls and procedures and, in his words, "we continue to strengthen all those areas that did not comply with Citi's global standards and best practices."