The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Mexico: Citi hangs on to Banamex

Agustin Carstens, the Mexican finance minister, has confirmed that Citi does not have to sell its Mexican unit, Banamex, following the US government’s investment in the US bank.

On March 20, Carstens said that Timothy Geithner, the US Treasury secretary, had reassured the Mexican authorities that the US government was only taking a temporary stake in Citi. Geithner also confirmed that the US government had no plans to influence the bank’s operations and that it hoped to relinquish its stake by 2012.

In March, the US Treasury propped up Citi after the bank’s share price collapsed. The Treasury converted $25 billion in preferred shares to common stock, giving the US government a 36% stake in Citi. In total, Citi has received $45 billion of US taxpayer-funded capital since October.

Since the bailout, speculation has been rife that a Mexican law that prohibits locally operated banks being owned by foreign governments would be violated. During a TV interview on Mexico’s Televisa channel at a Mexican banking convention in Acapulco, Carstens said: "Foreign government aid programmes don’t violate Mexican law... We are living through an exceptional, transitory, temporary period. The assistance of the US to Citigroup is helping Banamex." 

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree