Lawsuit filed in New York Court
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A bank accidentally transfers around 175 million euros (around 147 million euros) too much – and the recipient simply does not take the coal out again. Now the banking beef is going into the next round, the two parties meet in a New York court.
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Transfer the entire loan instead of interest
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The embarrassing mishap happened to the US bank Citigroup. Actually, “only” 1.5 million dollars in interest should be transferred to the hedge fund Brigade Capital Management. But the bank transferred $ 176 million instead.
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Reason for the million transfer: Citigroup had last week repaid an almost $ 900 million loan from the ailing cosmetics manufacturer Revlon to its creditors. Citigroup actually only wanted to transfer the interest due on behalf of Revlon and not – as it happened by mistake – to repay the entire loan.
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Obviously it was a mistake. “Citibank had no intention of transferring more money than was announced in the payment notices, nor of its own money,” said Citigroup. When the error was discovered, the bank immediately asked the recipient to repay the funds. Most of the recipients promptly repaid the money – only Brigade Capital refused.
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The bank now wants to force the hedge fund Brigade Capital Management to return around 175 million dollars after the wrong transfer. The hedge fund was initially unable to provide any comments.
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