The GAO Goes After Citibank

  • Share
  • Read Later
The General Accounting Office, Congress's investigative arm, is not usually known for producing page-turning whodunits. But the agency's report on Friday recounting Citibank's money dealings with Raul Salinas, the Mexican presidential brother who's been rumored to have links with drug lords, comes close. "The report is stark, unvarnished, and best of all a good read filled with details," says TIME correspondent S.C. Gwynne. "It tells how investigators believe the bank showed Salinas how to hide $100 million."

The report, which blasts Citibank for failing to follow its own procedures against money laundering, is expected to become more than just an investigative must-read. "The upshot of the report," says Gwynne, "will now be Senate hearings next year and the revival of a Justice Department probe." For its part, Citibank says the GAO got some of its facts and interpretations wrong, but that in any event the bank will cooperate with investigators. Keep watching for the next chapter.