Doofus Of The Day #1,072


Today’s award goes to Citibank for paying out $885.2 million too much to creditors of one of its clients – thereby making them very happy, I’m sure.  Sadly, it now wants its money back.

Citigroup went to trial Wednesday to try to recoup a half-billion dollars it claims is still due after it accidentally used nearly $900 million of its own money to repay lenders of Revlon, the struggling cosmetics company.

. . .

It stemmed from an Aug. 11 incident where the bank’s Citibank unit, acting as Revlon’s loan agent, wired $893 million to Revlon’s lenders rather than a planned $7.8 million interest payment, appearing to pay off a loan not due until 2023.

While some 200 Revlon lenders have repaid Citigroup, the bank wants hedge fund and asset managers including Brigade Capital Management, HPS Investment Partners and Symphony Asset Management to return the remaining $501 million. They claim they were simply paid what they were owed.

. . .

Under questioning from the lenders’ lawyer Adam Abensohn, Farrell agreed that the overpayment was “human error”.

There’s more at the link.

I’m sure the lenders are claiming they were paid only what they were owed.  With a few hundred million dollars at stake, wouldn’t you?

On the other hand, this might work out for Citibank in the long run.  I can see a lot of new customers opening accounts there, in the hope that the bank will make a similar mistake in their favor!



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