Citibank Can’t Get Back $500 Million It Wired By Mistake
CITIBANK LOSES BID TO RECALL $500 MILLION IN MISTAKEN PAYMENT TO REVLON INVESTORS
(CNN) – It’s being called one of the worst financial mistakes in recent years.
On Tuesday, a federal judge blocked Citigroup from getting back about $500 million it accidentally wired to Revlon Investors.
Citibank meant to only send about $8 million in interest payments.
But instead sent $900 million.
Citibank didn’t catch the mistake until a day later.
Some lenders refused to return about 500 million and Citibank wants it back.
There are laws for accidental transfers, but in New York, there are exceptions for beneficiaries entitled to the money who didn’t know it was an accident.
Citigroup says it ‘strongly disagrees’ with the ruling and intends to appeal.