Citi Should Get Back Rest of $900 Million Flub, Trade Groups Say
- Groups file briefs backing bank on payments to Revlon lenders
- They urge protecting banks that offer wire transfers from risk
Photographer: David Paul Morris/Bloomberg
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Citigroup Inc. should have more than $500 million it says it mistakenly transferred to Revlon Inc. creditors returned, financial services trade groups told a federal judge ahead of a trial over the payments.
Citi says an employee’s error caused it to accidentally send more than $900 million in August to Revlon lenders who were expecting a periodic interest payment, some of whom were engaged in a dispute with the struggling cosmetics giant. While the bank has recovered about $390 million, it has sued more than a half-dozen firms that have refused to return the money. A trial is scheduled to begin next month before U.S. District Judge Jesse Furman in Manhattan.