Citibank’s $500 Million Error

According to CNN, Citibank, acting as Revlon’s loan agent, accidently wired 100 times more than it intended, to Revlon’s lenders. Some returned the money, others did not, and applied the funds to Revlon’s loans.

Citibank sued, and lost. 

Typically, mistaken payments and transfers returned to the payor. But in this case, the amount of the payment was exact, to the penny, of the amount owed, although the loan wasn’t due yet.

photo credit: Brechtbug 2020 Citi Bank Boarded on Broadway Midtown NYC 0133  via photopin <a href=””>(license)</a>

Securities Attorney at Sallah Astarita & Cox | 212-509-6544 | | Website | + posts

Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page -, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.

The Securities Lawyer