After making what’s described as one of the ‘biggest mistakes in banking history’, Citibank cannot recover the nearly $500 million it accidentally sent to Revlon’s lenders, a US District Court judge ruled .
Citibank, which was Revlon’s loan officer, planned to send interest payments of around $8 million to the cosmetics company’s lenders. Instead, Citibank accidentally transferred nearly 100 times that amount, including $ 175 million, to a hedge fund. In total, Citi (C) accidentally sent $ 900 million to Revlon’s lenders.
According to CNN, some lenders returned the money and some did not. Citibank filed a lawsuit for the repayment of its funds in August, but has yet to receive $ 500 million from 10 investment advisers after the accidental transfer.
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