Citibank's $900 Million Blunder

What happens when you accidentally transfer ~$900 million to somebody you didn’t mean to?Revlon is a multinational American Cosmetics company.Citibank is a bank.Brigade Capital is a hedge fund.And a few days back, all three actors were involved in a dramatic sequence of events that can be best described as “comical”. Although the bank contests the transaction was a clerical error, Revlon was, in fact, liable to pay the money to Brigade Capital.In 2016, Revlon acquired Elizabeth Arden, an American Cosmetics brand. As the administrator of the gargantuan arrangement, it was incumbent on Citibank to collect payments from Revlon and transfer it to the lenders, including Brigade Capital. So, for now, Brigade can’t withdraw, transfer or dispose of the money, until the court can hear both sides and rule on the matter.Is it a mistake?Is it not?That is, quite literally, the million-dollar question.What do you think?Share this Finshots on WhatsApp, Twitter, or LinkedIn.Be a part of our ever growing community.