The American Citigroup Group incurred an estimated $ 323 million in losses due to a mistakenly transfer of $ 900 million to the creditors of the cosmetics company Revlon, which is at the heart of a grinding debt crisis.
According to Arabiyanet, in a statement, the bank said in a statement that it had retroactively added about $ 390 million of operating expenses to the accounts of the fourth quarter of last year to cover operational losses related to some issues. Legal, referring to losses related to Revlon's transfers.
The bank fought a legal battle to recover about $ 500 million in the transfer funds, but a federal court rejected the bank’s case on February 16, according to what was reported by the British Financial Times newspaper.
Last August, the bank said it had mistakenly transferred nearly $ 900 million to lenders to the cosmetic company Revlon, for which the banking giant acts as managing agent and middleman with creditors.
The bank added at the time that what had happened was an operational error and that it had taken actual steps to recover the excess amounts by communicating with the lenders whose funds were transferred to their accounts, but failed to recover the full amount at a time when some lenders had already refunded the excess funds.
The American banking group was supposed to transfer only interest payments to lenders on behalf of Revlon, but it transferred an amount nearly 100 times the amount it was supposed to transfer.
The American group made another banking mistake last September related to bonds worth about one billion dollars, as the group sent a notice to investors telling them that their bonds, which were expected to mature after 5 years from now, will mature in 2043.
