Central Bank regulators entered Citibank Argentina’s headquarters today, as the battle intensified between the government and holdout investors backed by New York district judge Thomas Griesa’s rulings.
The National Values Commission holds that Citibank violated local laws by striking a deal with the hedge funds. It has suspended the bank from conducting capital market operations and stripped its CEO’s authority.
«There will be an inspection of Citibank Argentina today to ensure it is functioning,» a central bank spokesman said. The regulators’ task will be to monitor operations, not take over management of the bank, he said.
Four inspectors wearing central bank lapel pins were later seen entering the bank’s headquarters in Buenos Aires.
A spokesman for Citigroup, Citibank Argentina’s parent group, had no comment on the situation.
On April 1, the central bank said Gabriel Ribisich, head of Citibank Argentina, could no longer represent the bank because he «ignored Argentina’s legal framework regarding sovereign debt restructuring.»
Citibank Argentina, the country’s 12th largest bank, has appealed the decision to remove Ribisich to the local courts, according to media reports. The Argentine Banking Association said the central bank did not observe «the constitutional guarantees of due process» in removing the bank chief.
Source: Buenos Aires Herald