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Citi Sues Over Unreturned Funds
Shares in US banking giant Citibank Group continue to struggle to establish momentum this week despite plenty of recent headlines.
Citi, which is the third-largest bank in America, recently filed a lawsuit. They requested that the Southern District of New York Court force the Brigade Capital hedge fund to return the $176 million Citi sent to it by mistake.
In the filing sent to the court, Citi said that it had meant to send Brigade just $1.5 million. This was in order to cover the interest on a loan held by the hedge fund. The funds are part of $900 million sent in erroneous payments sent to creditors of the cosmetics company Revlon. Citi blamed this on an “operational mistake”.
In its filing to the court, Citi said:
“When Citibank discovered the mistake, it promptly asked the recipients to return its money”.
The bank was preparing to step away from its role as Revlon’s administrative agent when it accidentally sent the payments. Some of the ...
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