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>

The Securities Lawyer