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Reuters
A U.S. court judge ruled that Citibank cannot recover nearly half a billion dollars it mistakenly sent to cosmetics giant Revlon.
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CNN’s website described what happened with the bank as “the biggest fatal mistakes in banking history.”
Citibank, which acts as a loan officer for Revlon, intended to send around $ 8 million in interest payments to lenders for the famous cosmetics company, and instead mistakenly sent nearly 100 times this amount, including $ 175 million. To the Brigad Capital Management Foundation, which specializes in investment credit, or what is called a “hedge fund”.
According to “CNN”, “Citibank” sent a total of about $ 900 million.
And “Citibank” filed a lawsuit last August, demanding that his money be returned to him, but he did not receive the full amount and about $ 500 million was left with 10 consulting firms.
Revlon’s lenders said they believed Citibank was making prepayments on a loan.
The money, by mistake, was the exact amount Citibank owed them.
“We are very pleased with the judge’s decision, which is thoughtful, thorough and detailed,” said Revlon representative Benjamin Finston.
The court ruled that Revlon had reason to believe the payment was intentional.
Citibank didn’t realize the extent of its mistake until almost a day later.
“The belief that Citibank, one of the most advanced financial institutions in the world, made an unprecedented error of nearly $ 1 billion,” the court document said, “may be illogical.”
Source: “CNN”
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