Monday, October 19, 2009

Citi may lose Banamex

More headaches for Uncle Vik. Because of a Mexican law which states that foreign governments can not own a stake in domestic banks Citi may have to jettison Banamex. Banamex makes money for Citi (in fact about 15% of its global profits) and its big kahuna, Manuel Medina Mora (3M as he is known in some circles) is very influential and important to have on the roster. How efficient Banamex is is another story entirely, but at least it is a big money-maker for the troubled bank which has many business units struggling to survive. Despite its earning power however, there are many who would not be sorry to see it go.

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