Citigroup Cannot Recoup Revlon Payouts After Nearly $900 Million Gaffe: US Judge theepochtimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theepochtimes.com Daily Mail and Mail on Sunday newspapers.
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A Citi sign is seen at the Citigroup stall on the floor of the New York Stock Exchange, October 16, 2012. REUTERS/Brendan McDermid
NEW YORK (Reuters Breakingviews) - Jane Fraser’s job as incoming chief executive of Citigroup is to act as a sort of plumber. She needs to fix the U.S. bank’s rusty pipes before they leak again. A New York judge on Tuesday gave her another $500 million incentive to get cracking.
At the heart of the story is a painful example of human error. As Citi was servicing a loan for client Revlon last year, three people failed to ensure the correct boxes were checked in the bank’s payment software. Instead of paying less than $8 million of interest, the “six eye” team accidentally repaid the roughly $900 million loan. Asset managers accounting for more than half of that refused to give the money back.
Citigroup can t recover Revlon payouts after $900 million gaffe: US court businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.
Judge Denies Citibank Bid to Recoup Some of Mistaken $893M Payments to Revlon Lenders
A federal judge on Tuesday said Citigroup Inc. is not entitled to recoup half a billion dollars of its own money that it mistakenly wired lenders of Revlon Inc., in what he called “a banking error of perhaps unprecedented nature and magnitude.”
U.S. District Judge Jesse Furman in Manhattan said the Aug. 11, 2020, transfers were “final and complete transactions, not subject to revocation.”
Citigroup plans to appeal. “We believe we are entitled to the funds and will continue to pursue a complete recovery of them,” a spokeswoman said.
NEW YORK - A federal judge on Tuesday said Citigroup Inc is not entitled to recoup half a billion dollars of its own money that it mistakenly wired lenders of Revlon Inc, in what he called "a banking error of perhaps unprecedented nature and magnitude." US District Judge Jesse Furman in Manhattan said the Aug 11, 2020, transfers were “final.