United States: Bank Mistakes Millions of Dollars

SEEN IN THE PRESS – US bank Citigroup mistakenly transferred millions of dollars to investment funds. According to New York justice, the sums lost cannot be returned.

“Citi does not have the right to recover its money. Conversely, the defendants have the right to keep the money .” Cold shower for this large   American bank which has mistakenly paid millions of dollars to several investment funds, explains  Ouest France . Last August, Citigroup had transferred a total of 900 million dollars: if 400 million dollars were returned, justice estimated, Tuesday, February 16, that  the investment funds were not obliged to return the rest of the money . 

New York judge Jesse Furman recalled that American law “generally pleads” for a  refund  of transfers made in error, but that the State of New York has “exceptions, one of which applies in this case “ . The investment funds “were convinced, in good faith, that the (…) payments received were early repayments of loans granted to Revlon”, explained the magistrate. Result: ” Citi does not have the right to recover its money . Conversely, the defendants have the right to keep the money,” he concluded.

A decision widely rejected by Citigroup which said it was “deeply in disagreement” with this verdict, while indicating its willingness to appeal. “We believe that we have the right to recover the funds and will continue to seek to recover them in full,” the establishment wrote in an email to AFP.

Note that the ordeal of the big bank does not stop there. Last October, this case prompted the US authorities to impose a fine of 400 million dollars and an “unusually strict” control. At issue: faulty risk management. 

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