Mostrando las entradas de marzo, 2021

A $900 million operational blunder

Citibank might need to accept that its $900 million operational blunder will leave a mark on its balance sheet in the most stunning combination of a bad user interface, ineffective six-eyes control, and the weight of judicial precedent.  As an administrative agent, Citibank wanted to make a $7.8 million interest payment to Revlon lenders but ended up transferring almost $900 million - the full loan amount. They noticed the error the next day and requested the money back. This is the story of the 10 fund managers that Citibank is suing for not returning the funds. A couple of weeks ago, a New York judge sided with the defendants leaving Citibank holding over $500 million of Revlon debt - the unreturned amount. The expected losses amount to $386 million from bad debt provision and legal expenses. The backdrop of the story It all started in 2016 when Revlon acquired Elizabeth Arden to consolidate further its cosmetics, skincare, and fragrance offerings. Citibank helped Revlon raise $1,800