Current Events > Citibank can't get back $500 million it wired by mistake, judge rules

(+) Yeah! (+)

https://www.cnn.com/2021/02/16/business/citibank-revlon-lawsuit-ruling/index.html

After committing one of the "biggest blunders in banking history," a US District Court judge ruled that Citibank cannot recover the almost half a billion dollars it accidentally wired to Revlon's lenders.

Citibank, which was acting as Revlon's loan agent, meant to send about $8 million in interest payments to the cosmetic company's lenders. Instead, Citibank accidentally wired almost 100 times that amount, including $175 million to a hedge fund. In all, Citi (C) accidentally sent $900 million to Revlon's lenders.

Citibank filed a lawsuit in August seeking the return of its funds, but it still has not received $500 million from 10 investment advisory firms after the accidental transfer.

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so... buy revlon stock?

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i mean, if I were some other person doing business with those companies that refuse to return the money, Id be thinking long and hard about whether I should continue to do business with them

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Why not?

I thought it was fairly easy for companies to get cash back on erronous transferals.
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I guess that money spread out quick and was gone by the time the lawsuit hit.

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After all, the money accidentally wired was the exact amount "to the penny" Citibank owed them, although the loan wasn't set to mature for quite some time.

so they accidentally paid off a loan and want the money back?

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Citi is a bank that can borrow money at practically 0% interest, they will be ok.

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citibank going to get that money back... by hiking fees. those bastards.
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Twin3Turbo posted...

i mean, if I were some other person doing business with those companies that refuse to return the money, Id be thinking long and hard about whether I should continue to do business with them

they can afford to find another bank

That seems a bit ridiculous, not that I'll lose any sleep over it.

But if you or I got that money by accident we would not be allowed to keep it

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TheGoldenEel posted...

so they accidentally paid off a loan and want the money back?

They paid off their client's loan with their own money by mistake, it wasn't Revlon's money they paid.

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eston posted...

That seems a bit ridiculous, not that I'll lose any sleep over it.

But if you or I got that money by accident we would not be allowed to keep it

Unless you spent a good chunk of that money on lawyers

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