OMG! Citibank transfers over Rs 3,600 crore by mistake, the courtroom ruling is equally astonishing

New Delhi: In what may very well be termed as the most important mistake within the banking historical past, Citibank transferred USD 900 million (over Rs 3,600 crore) to a bunch of lenders, solely to be later advised by the US courtroom that the transaction was “last and full transactions, not topic to revocation.”

A US federal decide on Tuesday mentioned Citigroup Inc will not be entitled to half a billion {dollars} of its personal cash that it mistakenly wired in what he known as “a banking error of maybe unprecedented nature and magnitude,” Reuters reported. US District Choose Jesse Furman in Manhattan mentioned wire transfers to lenders of cosmetics maker Revlon Inc at concern had been “last and full transactions, not topic to revocation.”

Citigroup spokeswoman nevertheless mentioned that the financial institution strongly disagrees with this determination and intends to enchantment.

Citigroup, performing as Revlon`s mortgage agent, wired $893 million to Revlon`s lenders, showing to repay a mortgage not due till 2023. Citigroup had supposed to ship a $7.eight million curiosity fee, and blamed human error for the gaffe.

Some lenders returned cash they had been despatched, however 10 asset managers together with Brigade Capital Administration, HPS Funding Companions and Symphony Asset Administration refused, prompting Citigroup`s lawsuit to recoup the estimated $501 million they obtained.

Citigroup had argued that the lenders ought to return the cash as a result of they knew or ought to have recognized it made a mistake, and that Revlon couldn’t afford the fee.

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However in a 101-page determination, following a six-day trial in December, Furman famous that the transfers matched “to the penny” what the lenders had been owed, and mentioned it appeared there had by no means been a mistake of this measurement earlier than.

With Reuters Inputs


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