Linette Lopez put it this way in Business Insider:
After suspending Citibank’s access to Argentine capital markets and sacking the bank’s CEO in the country, Argentine authorities will perform an “integral inspection” [on the bank].
How did we get there? The history (same source):
Argentina wanted Citibank’s custody business to pay out creditors in violation of an order from the US judge presiding over the country’s decade-old lawsuit with a group of hedge funds known collectively as NML.
Judge Thomas Griesa’s basic order, which pushed Argentina into default this summer, was that Argentina cannot pay some creditors who bought Argentine sovereign debt … and not others.
Argentina tried to get around that order by putting the bonds in question under its own jurisdiction — essentially waving a magic wand and making Judge Griesa’s authority disappear. Unfortunately international law doesn’t quote work that way exactly, and since Citi didn’t want to violate the law, it came to an agreement with the Court and NML so that it could take its custody business out of Argentina altogether.
Evidently that didn’t work.