Citi Integrated Payables Solutions and Citigroup Inc (NYSE:C)’s Mexican Trouble

In the latest developments, Citigroup Inc (NYSE:C) announced the launch of ‘Citi Integrated Payables Solutions’ through its Treasury and Trade Solutions unit. On the other hand, the Bank will require paying a fine of $2.2 million over lapses by its Mexican unit Banamex. People with knowledge of the matter also reported that Chairman of Citi’s Mexico unit, Manuel Medina-Mora, is planning to leave in near-term.

Innovative Offering

Citigroup Inc (NYSE:C)’s innovative and interactive analytics and payment solutions package will enable its corporate clients to maximizing efficiency across their supply chain. The solutions will also provide more flexibility to organizations to optimize their working capital, support their suppliers, reduce supply chain risk and total costs.

Citi’s innovating offering comprises proprietary analytics, supply chain finance, core payments, commercial cards, advisory services, universal supplier on-boarding mechanisms and client-to-bank connectivity channels. The analytics component provides comprehensive multi-product recommendations, enabling clients to perform scenario modeling in real-time.

Citi’s Global Head of Treasury and Trade Solutions, Naveed Sultan, said the launch of a new package will allow our clients to identify new opportunities within their business systems. Citi is one of the industry leaders in developing disruptive solutions that can drive transformation for both our clients and banking industry at large.

The Mexican Trouble

Mexico’s National Banking and Securities Commission said that a Mexican unit of Citigroup Inc (NYSE:C) lacked internal controls and failed in its prudential responsibilities. Lapses in oversight of loans to Oceanografia cost more than $500 million to Banamex, which it identified as an ‘exceptional’ case.

Several Board members pressured Medina-Mora to accept the accountability lapses and leave Citigroup Inc (NYSE:C). Though the departure is not officially announced, people familiar with the matter predict his resignation by the end of 2014 or early 2015. He has exceptionally led the business even through the 2008 financial crisis, which also raised his credibility once upon as a CEO contender.

About the Author

Laurie, a long-time member of the US Markets Daily general assignment reporter who has covered a variety of subjects from breaking news to investigative features, from stock markets to politics, and from neighborhood small business to global warming.

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