Friday, April 3, 2015

Bankers, Central Bank crossfire over Citibank CEO's removal

The Argentine Central Bank removed the authorization granted to Gabriel Juan Ribisich to work as Citibank Argentina CEO.

Argentine bankers and businessmen have questioned the Central Bank’s decision to remove the authorization granted to Gabriel Juan Ribisich to work as Citibank Argentina’s CEO. The CB described their reaction as “corporate defense.”

The Argentine Banks Association (ABA) and the Argentine Business Association (AEA) rejected earlier today the decision by the Central Bank to remove the authorization granted to Ribisich to hold post.

The Central Bank said Ribisch defied Argentine regulations when he followed the agreement signed between Citibank and holdout investors of Argentine debt amid the ongoing conflict between the South American country and so called “vulture funds”, and gave Citibank 24 hours to present a new candidate for the post.

ABA expressed their “worry” about the decision and said in a statement that they “reject the order that unfairly affects” one of their members and associates.

The Banks Association questioned the legality of the removal, pointing out that “proper constitutional guarantees to legal defense have not been met:” “We hope authorities provide the necessary means to redirect the case within a constitutional framework.”

ABA “emphatically” praised Ribisich and said they “completely trust his good name” while stressing his “excellence as a professional.”

Later today, the Central Bank dismissed ABA and AEA’s statements saying they are “false and suppose a corporate defense of the establishment that is not admissible, in the context of vulture funds harassing the country.”

The entity headed by Alejandro Vanoli said the decision was taken “within the law, as the BCRA has the faculty to object any executive of a financial corporation as long as it considers he does not fulfill current regulations.”

“Also, it is false that the CEO does not have the possibility to defend himself and object the decision taken by the BCRA board, as he or Citibank can turn to justice, or complain before the BCRA itself,” the Central Bank said.