![]() ![]() Citibank itself did not realize the magnitude of its mistake until nearly a day later. The court ruled the lenders were justified in believing the payment was intentional. “We are extremely pleased with Judge Furman’s thoughtful, thorough and detailed decision,” said Benjamin Finestone, who represented two lenders, Brigade and HPS Investment Partners. After all, the money accidentally wired was the exact amount “to the penny” Citibank owed them, although the loan wasn’t set to mature for quite some time. Revlon lenders said they believed Citibank was wiring prepayments for a loan. If the beneficiary is entitled to the money and did not know it was accidentally wired, they can keep it. People walk past a Citibank branch in New York, New York, USA, 16 January 2020.Ĭitibank in New York, USA - Justin Lane/EPA-EFE/ShutterstockĬitibank struggles to get mistakenly wired money back Mandatory Credit: Photo by JUSTIN LANE/EPA-EFE/Shutterstock (10528389a) A Pennsylvania couple faced felony charges after spending money accidentally deposited in their account.īut New York law has exceptions to this rule, known as the “discharge-for-value-defense.” Accidental transfers are common in the digital age, and wires can be paid back instantly. The law usually punishes those who spend money accidentally deposited in their accounts. Citibank filed a lawsuit in August seeking the return of its funds, but it still has not received $500 million from 10 investment advisory firms after the accidental transfer. Some lenders did return the money, but others did not. (C) accidentally sent $900 million to Revlon’s lenders. (C)bank accidentally wired almost 100 times that amount, including $175 million to a hedge fund. (C)bank, which was acting as Revlon’s loan agent, meant to send about $8 million in interest payments to the cosmetic company’s lenders. After committing one of the “biggest blunders in banking history,” Citibank won’t be allowed to recover the almost half a billion dollars it accidentally wired to Revlon’s lenders, a US District Court judge ruled. ![]()
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