Citibank can't get back $500 million it wired
by mistake, judge rules
CNN,
by
Ramishah Maruf
Original Article
Posted By: earlybird,
2/17/2021 9:51:07 AM
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.
Citi (C)bank, which was acting as Revlon’s loan agent, meant to send about $8 million in interest payments to the cosmetic company’s lenders. Instead, Citi (C)bank 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.
Reply 1 - Posted by:
WhamDBambam 2/17/2021 9:59:08 AM (No. 698975)
Couldn't happen to a more deserving outfit.
17 people like this.
Reply 2 - Posted by:
anniebc 2/17/2021 10:08:07 AM (No. 698986)
Ha! Ha! They call that karma. Sow the wind, reap the whirlwind.
14 people like this.
Reply 3 - Posted by:
padiva 2/17/2021 10:19:36 AM (No. 698996)
Just wondering... ..... Are Hunter and 'the big guy' involved?
15 people like this.
how does this happen? any review of transfers prior to sending amounts this large take place?
11 people like this.
Reply 5 - Posted by:
NorthernDog 2/17/2021 10:22:34 AM (No. 699003)
FTA
2 people like this.
Reply 6 - Posted by:
DVC 2/17/2021 10:31:53 AM (No. 699014)
So, If they had sent that money to you or I, the judge would have ordered it returned immediately, and all our bank accounts, all our possessions on this earth would be seized to pay for this.
But - if it is a few hedge funds - no harm, keep the loot.
I wonder how much of the money the judge got for his services?
35 people like this.
Reply 7 - Posted by:
ussjimmycarter 2/17/2021 10:40:47 AM (No. 699028)
25 years ago, I was working for a Big 8 Bank in Minneapolis. My buddy was a SVP. I went to see him and two guys were leaving his office. They were from another bank and they had wired our bank 4 million dollars by mistake. My buddy told them tough luck! As far as I know they never got their funds back! LOL!
3 people like this.
Reply 8 - Posted by:
zephyrgirl 2/17/2021 10:58:36 AM (No. 699055)
I worked for an agency that accidently sent a multi-million dollar payment intended for one state to another state. It was a multi-person failure, starting with an employee who had a brain tumor and ending with the person who actually pushed the "Pay" button who didn't check any payments or the recipients. It wasn't caught until the recipient state called and asked why they were getting such a big payment. Oops! We got the money back in a very short time, though because the recipient state was honest (and a red state).
13 people like this.
Reply 9 - Posted by:
kiwinews 2/17/2021 10:59:19 AM (No. 699056)
So, as I read this - Revlon owed 500 mil. Citibank, acting as their agent, accidentally paid their creditors the full amount owed rather than just the little bit Revlon intended. loan is paid back. Judge ruled creditors get to keep the money. Makes sense to me. Revlon has a beef with Citibank, but not with the lenders. Those people got their own money back, just early. This is nothing at all like the cases cited of people spending money accidentally deposited to their account to which they have no legitimate claim.
11 people like this.
Reply 10 - Posted by:
Chuzzles 2/17/2021 11:15:59 AM (No. 699085)
While I feel badly for them for this error, if Joe or Jane Citizen spent extra found money that was in their account, does anyone think a judge would excuse that? I don't.
5 people like this.
Reply 11 - Posted by:
nelsonted1 2/17/2021 11:20:32 AM (No. 699095)
40 some years ago our softball coach found a payment of $53,000 in their checking account. After awhile the bank wanted it back. The couple didn't have most of it they bought stuff. The.local newspaper asked the couple at the courthouse why didn't they question their sudden affluence. Wife said she was expecting inheritance from her father and thought that was it. The bank wasn't was not at.all happy.
2 people like this.
Reply 12 - Posted by:
RobertJ984 2/17/2021 11:34:25 AM (No. 699109)
Lol. What's in your wallet?
4 people like this.
Reply 13 - Posted by:
Omen55 2/17/2021 11:34:47 AM (No. 699111)
I have one question.
Was anyone fired?
4 people like this.
Reply 14 - Posted by:
Ribicon 2/17/2021 11:50:30 AM (No. 699126)
The loss as usual will just be passed along to the customers at some point through higher fees or interest rates on loans, or even lower rates paid on savings.
1 person likes this.
Reply 15 - Posted by:
Golden Goose 2/17/2021 11:56:26 AM (No. 699134)
What a waste! That’s enough to give every person in America $1,000,000 and completely end poverty and homelessness.
Regretfully,
Brian Williams
4 people like this.
Reply 16 - Posted by:
Catherine 2/17/2021 12:15:21 PM (No. 699164)
My bank once 'accidentally' put one million dollars in my account. I called and asked if I could keep it. Nope! As for this being an accident, yeah right.
1 person likes this.
Reply 17 - Posted by:
davew 2/17/2021 12:29:00 PM (No. 699205)
So the key word here is "agent" which implies there is a fiduciary relationship between Revlon and Citi. If the load was paid early out of Citi funds they may be able to charge those to Revlon as "settlement fees" or other expense items and try to arrange for Revlon to pay them back on the original loan schedule. I don't think Revlon can just screw Citi and still maintain an "agent" relationship but I haven't seen their agreement.
2 people like this.
Reply 18 - Posted by:
mathman 2/17/2021 12:51:35 PM (No. 699255)
This is the reward for hiring employees who do not practice white supremacy math. Affirmative action hires. Lost a decimal point. oops.
Sorreee.
You lose.
8 people like this.
Reply 19 - Posted by:
Lawsy0 2/17/2021 1:13:48 PM (No. 699303)
A million here, a million there, pretty soon it is some REAL money.
3 people like this.
Reply 20 - Posted by:
judy 2/17/2021 1:23:52 PM (No. 699326)
It sounds like a corrupt judge. What would he do if they did this to his bank account by mistake????? SOOOOO if I accidentally received this I would be required to pay it back...because there is 2 sets of rules in this corrupt country..one for the rich & one for the little people....
2 people like this.
Reply 21 - Posted by:
bigfatslob 2/17/2021 2:49:46 PM (No. 699486)
Someone made the error probably some outcome based educated person oops close enough to $8 million as they could tell.
A good white privilege education might have helped instead remedial math in senior year of college.
1 person likes this.
Reply 22 - Posted by:
cycloneman 2/17/2021 10:03:21 PM (No. 699887)
I guess Mr. Potter was correct by not giving back the missing money to George Bailey's Building & Loan in the movie "It's a Wonderful Life". Perhaps we need to make a modern version of the movie to ensure that Mr. Potter is not cast as the villain. On the other hand, a basket can be passed around to the friends of Citibank to raise $500M to make up for Citibank's mistake.
0 people like this.
Reply 23 - Posted by:
stablemoney 2/18/2021 1:15:42 AM (No. 700000)
The judge is on thin ground. Citibank advised those receiving the wire that it was a mistake. Those getting the money were not expecting it, did not ask for it. Revlon's lenders were not asked for the payoff amount, or advised that they would be paying off the loan. Revlon's lenders cannot contend that they believed it was a payoff, when Citibank told them it was not. These types of errors have happened in electronic transfers for many decades, and there are many cases, none of which were decided on the side this judge has done. Read the Electronic Funds Transfer law, terms and conditions, on and on. This ruling is unlikely to stand.
1 person likes this.
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