About: http://data.cimple.eu/news-article/86e099481c1e29684a4701798883486b82187cc1fdeca249f966d856

Facets (new session)
Description
Metadata
Settings
- owl:sameAs
- Inference Rule:

About: http://data.cimple.eu/news-article/86e099481c1e29684a4701798883486b82187cc1fdeca249f966d856 Goto Sponge NotDistinct Permalink

An Entity of Type : schema:NewsArticle, within Data Space : data.cimple.eu associated with source document(s)

Attributes	Values
rdf:type	schema:NewsArticle
schema:articleBody	Citigroup is on the hook for almost $900 million in mistaken payments it sent out, according to a US judgment Monday that called the debacle "one of the biggest blunders in banking history." The case centers on payments totaling some $500 million Citigroup sent in August 2020 to 10 financial companies who were parties to a term loan to cosmetic company Revlon. Citi, the loan's administrative agent, mistakenly paid back the $900 million principal to the members of the lending consortium, rather than interest payments. Citi quickly realized the error, but was rebuffed the following day by the lenders, which included Allstate Investment and Greywolf Loan Management. These entities thought Revlon was repaying the loan early, said US District Judge Jesse Furman. Because defendants in the case believed "in good faith and with ample justification" that the payments were for the full Revlon loan, "defendants' clients are entitled to keep the money," Furman said in a 105-page ruling. Citi plans to appeal the decision. "We strongly disagree with this decision and intend to appeal," a Citi spokeswoman said in an email. "We believe we are entitled to the funds and will continue to pursue a complete recovery of them." Furman said lenders' assumption about repayment made sense given that Revlon was known to be under financial duress due to Covid-19. "Given a choice between assuming that Revlon had paid off the 2016 Term Loan early -- as borrowers sometimes do -- and assuming that Citibank or Revlon had mistakenly transferred over $900 million -- something no bank may have ever done before (and may never do again) -- it would have borderline irrational to choose the latter," Furman said. Furman pointed in his ruling to a 1991 case, which "unambiguously" settled that New York law holds that "banks making wire transfer payments to bona fide creditors bear a risk of loss should a mistake occur," he said. Still, Furman noted defendants "are not yet necessarily free to do with the money what they want," noting the possibility of appeal. jmb/ft
schema:headline	US judge: Citi can't get back $500 mn it wrongly paid out
schema:mentions	Allstate Wire transfer Golf stroke mechanics New York City Coronavirus disease 2019 Jesse M. Furman Furman Paladins football Revlon Citibank FIDE Citigroup Market trend
schema:author	http://data.cimple.eu/organization/1f0054d541e000623a2c1e561a247c073ef6328e8be9ffafda7b3fcd
schema:datePublished	2021-02-16 (xsd:date)
http://data.cimple...sPoliticalLeaning	other political leaning
http://data.cimple...logy#hasSentiment	negative sentiment
http://data.cimple...readability_score	81 (xsd:integer)
http://data.cimple...tology#hasEmotion	anger

Faceted Search & Find service v1.16.115 as of Oct 09 2023

Alternative Linked Data Documents: ODE Content Formats:

RDF

ODATA

Microdata

About

OpenLink Virtuoso version 07.20.3238 as of Jul 16 2024, on Linux (x86_64-pc-linux-musl), Single-Server Edition (126 GB total memory, 3 GB memory in use)
Data on this page belongs to its respective rights holders.
Virtuoso Faceted Browser Copyright © 2009-2025 OpenLink Software