NEW YORK (Reuters) – A federal judge on Tuesday said Citigroup Inc is not entitled to recoup half a billion dollars of its own money that it mistakenly wired lenders of Revlon Inc, in what he called “a banking error of perhaps unprecedented nature and magnitude.”
U.S. District Judge Jesse Furman in Manhattan said the Aug. 11, 2020, transfers were “final and complete transactions, not subject to revocation.”
The background is that Revlon – probably – cannot repay this loan/bonds. Citigroup meant to send out the interest payment – $7.8 million. Instead it sent the full loan amount, near a billion.
And, of course, the loan payment recipients have said ta v much.
There are, it has to be said, entire departments that spend their lives sorting out oopsies in payment amounts, who they’re sent to and so on. Normally an oopsie is returned because me today, you tomorrow. But get to a large enough amount of uncertain future payment and……