Boston, MA 04\/07\/2014 (wallstreetpr) \u2013\u00a0Michael Corbat led U.S. financial giant Citigroup Inc (NYSE:C)<\/b> has seen many defeats and confronts many tough situations in last few months. The probe against them by FBI, takes a grave toll on their business and they have to exclude whopping $400million revenue from their books of accounts due to the fraudulent activity done by Banco Nacional de Mexico (Banamex), the Mexican division of this investment bank and Oceanografia S.A. de C.V. (OSA), one of the biggest Mexican oil services company and a key\u00a0 state owned supplier of crude oil Petr\u00f3leos Mexicanos (Pemex).<\/p>\n
The fraud<\/b><\/p>\n
To meet up the loan taken by the Oceanografia from Petr\u00f3leos Mexicanos, the later Mexican crude company taken an accounts receivable program from banamex and provided $585 million as short term loan. Therefore the Oceanografia has to pay an outstanding of $33 million. But in 2014 when Oceanografia has been lost a contract of Mexican government, then banamex and pemex started diligent reviews about the l Oceanografia\u2019s credit exposure. And thus as the consequence of this, they have accounted a large amount of accounts receivable and take fraudulent activity and showed a inflated sue amount with Oceanografia.<\/p>\n
The effect on Citigroup Inc (NYSE:C)<\/b><\/p>\n
Due to this fraudulent activity by its Mexican wing, citi group has to take blows and they have decrease the profit of $400 million from their books of accounts and they have to pay $235 million dollar as post tax charges which taken down their revenue to $13.7 billion from $13.9 billion in the during the year. As a result of this the citi\u2019s plan to raise capital under the Dodd-Frank Act has been rejected by the Federal Reserve.<\/p>\n
Bouncing back <\/b><\/p>\n
Though the US giant has to take a lot of blow in the past and which severely damage their revenue and reputation, but now again there are bouncing back to the track and to gain the realm which they previously lost due to the brawl. Citigroup Inc. (NYSE:C) for its ability to create and retain the value in its tangible book value per share is one of the main reasons of their success. After the bailout of 2008\/2009 the co is growing stronger and getting the lost foothold in the business.\u00a0 Till date after the slump the company has grown their tangible book value\/share to 33%, where as its peers like Bank of America secured only 15% till date. The last 5 year trends are also showing a good and positive growth result for Citigroup Inc. (NYSE:C) So it is probably the time to ride and bet money on them to get a good and steady return.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 04\/07\/2014 (wallstreetpr) \u2013\u00a0Michael Corbat led U.S. financial giant Citigroup Inc (NYSE:C) has seen many defeats and confronts many tough situations in last few […]<\/p>\n","protected":false},"author":2,"featured_media":14582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[1942],"tags":[1631,1008],"stock_ticker":[],"class_list":["post-18793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-citigroup-inc-nysec","tag-nysec","entry"],"acf":[],"yoast_head":"\n