Citi reports Mexican unit fraud

The bank said it discovered fraud in its Mexico subsidiary, Banamex. As a result, Citibank (C)lowered its reported '13 net income from $13.9 bil to $13.7 bil on its annual 10-K report March 3. The fraud stemmed from a $585 mil credit Banamex extended to Mexican oil services firm Oceanograia SA (OSA), which supplied Mexican oil company Pemex. On Feb. 11, Citi learned OSA was suspended from Mexican gov't contracts. A review showed some Pemex accounts were fraudulent, Citi said. Shares fell 0.1% to 48.63.

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