Citibank Can’t Get Back $500M Wire, “Biggest Blunder in Banking History”

Previously, it was revealed that Citibank accidentally wired $900 million to Revlon’s lender when they meant to send off $8 million in interest payments. As a result, some lenders reportedly kept the money. Since then, a judge has ruled that Citibank will not be allowed to recover the hundreds of billions of dollars mistaken sent to Revlon.

Citibank was serving as a loan agent for Revlon and were supposed to send $8 million in interest payments to Revlon’s lenders. However, they accidentally wired $900 million to Revlon’s lenders, which included $175 million to a hedge fund.

Citibank filed a lawsuit in August 2020 where they asked for their funds to be returned but still haven’t received $500 million from 10 investment advisory firms after the “biggest blunder in bank history.” According to Revlon, they believed Citibank was wiring pre-payments for a loan. Ben Finestone, a lawyer for two of the lenders, said, “We are extremely pleased with Judge Furman’s thoughtful, thorough and detailed decision.”

Source: CNN