MEXICO CITY, Oct 3 (Reuters) - Javier Arrigunaga, Chief Executive Officer of Citigroup’s Mexican unit Banamex, has resigned, the bank said on Friday, following a loan scandal that has plagued Banamex since early this year.
“Given the difficulties our institution has faced during the past year, Javier Arrigunaga reached the decision that new leadership was needed for the group,” Manuel Medina Mora, the chairman of Banamex’s board said in a statement.
Banamex’s management has been under pressure since it came to light earlier this year that the bank had made bad loans that forced it to write down millions of dollars.
Citigroup said in February it uncovered $400 million in bogus loans that Banamex made to Mexican oil services company Oceanografia, whose assets the government seized.
Arringunaga has been replaced as CEO by Ernesto Torres Cantu, the bank said in the statement. (Reporting by Tomas Sarmiento)