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Banks' most embarrassing (and expensive) mistakes

By Alina A. Wang of Cheapism |

Slide 2 of 16: While acting as a loan agent for embattled cosmetics company Revlon, Citibank accidentally transferred $900 million to the company’s creditors. The mishap, which took place in August 2020, was due to a “clerical error” and resulted in Citigroup being forced to restate its fourth-quarter earnings for that year. In addition to doing a good deal of explaining to its banking regulators, the banking giant has yet to recover approximately $500 million from the accidental transfer due to some of the lenders holding onto the money they felt was owed to them by Revlon (even though the funds belonged to Citigroup and not Revlon.) In February 2021, a U.S. District Court Judge ruled in favor of Revlon’s creditors and said Citibank is not entitled to recover the lost money. Related: The Most Expensive Typos in History

Citibank: ‘Biggest Blunder in Banking History’

While acting as a loan agent for embattled cosmetics company Revlon, Citibank accidentally transferred $900 million to the company’s creditors. The mishap, which took place in August 2020, was due to a “clerical error” and resulted in Citigroup being forced to restate its fourth-quarter earnings for that year. In addition to doing a good deal of explaining to its banking regulators, the banking giant has yet to recover approximately $500 million from the accidental transfer due to some of the lenders holding onto the money they felt was owed to them by Revlon (even though the funds belonged to Citigroup and not Revlon.) In February 2021, a U.S. District Court Judge ruled in favor of Revlon’s creditors and said Citibank is not entitled to recover the lost money.

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