Below is a full copy of the memo from CEO Michael Corbat:
As you know, in February, we discovered a significant fraud in the Pemex accounts receivable supplier financing program. Since that discovery, we have been proceeding aggressively on several fronts:
First, we conducted a rapid review of accounts receivable financing programs globally. We concluded that none had issues similar to the Pemex supplier program, and we continue to believe this was an isolated incident. Second, we are reviewing our controls and processes in Mexico and are strengthening any area we think falls short of our global standards and best practices.
Third, we have been conducting a rigorous internal investigation, supported by external counsel, to determine how the fraud occurred. I have committed to you that we would hold accountable anyone who perpetrated the crime. We are sharing information with our regulators and law enforcement agencies, which will make any determinations as to criminal liability for the fraud. We've previously said that we terminated one employee, who we believe was directly involved in the fraud. We also said we would hold accountable any employee who enabled it, whether through lax supervision, circumvention of our controls, violations of our Code of Conduct, or otherwise.Fannie and Freddie Plaintiffs Eye FDIC Share Sales
Were Fannie, Freddie Negotiations Done in Good Faith? -- Written by Antoine Gara in New York. Follow @AntoineGara
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts